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Cannabis Co. Verano Expands In Pennsylvania With $207M Acquisition Of Cultivation, Research And Retail Assetts

April 22, 2021 1:47 pm
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Cannabis Co. Verano Expands In Pennsylvania With $207M Acquisition Of Cultivation, Research And Retail Assetts

Verano Holdings Corp. (CSE:VRNO) (OTCQX:VRNOF) is expanding its cultivation and retail footprint in Pennsylvania.

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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Photo by Kimzy Nanney on Unsplash