Cannabis Co. Verano Expands In Pennsylvania With $207M Acquisition Of Cultivation, Research And Retail Assetts
The Chicago-based company opted to acquire all of the issued and outstanding equity interests in Agri-Kind, LLC, and Agronomed Holdings Inc. for $66 million in cash, $49.5 million in stock, and a performance-based earnout of $31.5 million.
Verano is also poised to obtain all of the issued and outstanding equity interests in Agronomed Biologics, a research joint venture between Agronomed Pharmaceuticals, LLC and The Healing Center. In exchange, the company agreed to pay $60 million in a combination of cash and stock.
The two transactions include:
- A Chester-based 62,000 square feet cultivation facility.
- The equity in a permit to launch six dispensaries.
- An additional cultivation facility currently in a build-out phase.
“Adding cultivation is an important component of our model, enabling us to drive strong margin expansion,” George Archos, Verano’s co-founder and CEO of Verano, said Thursday.
“We’ve been determined to gain a true leadership position in Pennsylvania,” he added.
Verano purchased all of the issued and outstanding equity interests of The Healing Center for $110.3 million last month, expanding its retail footprint with three stores located in the Pittsburgh-metro area of Township, Washington, and Monroeville.
Verano’s shares were trading 0.27% higher at $18.25 a the time of writing.
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