Bye-Bye NYC License: Verano Cancels $413M Goodness Growth Acquisition, Says It's In 'The Best Interest' Of The Company

Multi-state cannabis operator Verano Holdings Corp. VRNO VRNOF terminated previously announced deal to acquire Goodness Growth Holdings, Inc. GDNSF. The company confirmed Friday it has terminated the arrangement agreement dated January 31, 2022, by Verano and Goodness Growth Holdings Inc.

“We believe the decision to terminate this arrangement agreement was in the best interest of Verano and our shareholders,” George Archos, Verano founder and chief executive officer stated. “As we work through the termination process, we expect to provide additional commentary.”

On October 13, 2022, Verano provided written notice to GGH that it was exercising its termination rights in accordance with the terms of the Arrangement Agreement based upon GGH’s breaches of covenants and representations in the Arrangement Agreement and the occurrence of other termination events. As a result of the termination, the Company further asserted that GGH owes the Company a termination fee in the amount of $14,875,000 plus the reimbursement of transaction expenses up to $3,000,000.

A copy of the arrangement agreement was included as Exhibit 10.13 to the Company’s registration statement on Form 10 initially filed with the U.S. Securities and Exchange Commission on April 26, 2022, and amended on June 17, 2022, August 19, 2022, and September 8, 2022.

The company expects to provide additional information during its next earnings conference call.

Price Action

Verano shares closed Thursday market session 0.43% higher at $4.62 per share.

Related Links

Where To Buy Legal Weed These Days: Curaleaf, Trulieve & Other Cannabis Operators Launch Sales At New Locations

Verano Launches 2nd Annual Breast Cancer Awareness Month Donation Effort

Hurricane Ian Takes Its Toll On Cannabis Stocks: Trulieve, Verano, Ayr Wellness Closing Stores

Photo: Courtesy of Esteban Lopez on Unsplash