Verano to expand its Pennsylvania Annex and increase retail capacity
Expansion of cultivation and production in Pennsylvania with an active, fully constructed, 62,000 square foot indoor facility in the fifth most populous state in the United States.
Gives the company the opportunity to expand its retail presence with equity in the form of a license to open six pharmacies and a second cultivation and manufacturing facility.
CHICAGO, April 22, 2021 (GLOBE NEWSWIRE) – Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) (Verano or the Company), a leading multinational cannabis company, announced today that it has entered into definitive agreements for all of the issued and outstanding shares of Agri-Kind, LLC, Agronomed Holdings Inc. and Agronomed Biologics, LLC, which together represent an interest in two cultivation licenses (one active site plus another facility for additional cultivation and production currently under construction) and an interest in a six outlet license (inactive, still under development) in Pennsylvania. These equity transactions will strengthen Verano’s presence in Pennsylvania and solidify the company’s position as a market leader in the United States. Completion of the above transactions is subject to customary conditions, contingencies and approvals, including regulatory approval.
We were determined to become a true leader in Pennsylvania. With the ongoing investments in Agri-Kind and Agronomed Biologics, in addition to the previously announced investments in six of the state’s top performing pharmacies, we are confident in our ability to execute our strategy.
George Arkos, co-founder and CEO of Verano
The addition of culture is an important part of our model that allows us to actively increase margins. We are excited to bring the culture online and introduce Verano’s premium product line to a large patient community in Pennsylvania.
Strengths of the activity
Verano has entered into definitive agreements for two transactions involving a 62,000 square foot active cultivation facility, a participation in a permit to construct six dispensaries, and another cultivation facility currently under construction by the Pennsylvania Clinical Registrar Program.
Agri-Kind. Under the terms of the agreement, Verano agreed to a transaction for all of the issued and outstanding shares of Agri-Kind, a 62,000 square foot Chester-based company, and Agronomed Holdings Inc. The purchase price is $66,000,000 in cash, $49,500,000 in converted shares, subject to adjustments, and a gain of $31,500,000, subject to certain performance parameters. The management team of Agri-Kind is expected to remain with the company.
Agronomic biology. Under the terms of the agreement, Verano agreed to a transaction for all of the issued and outstanding shares of Agronomed Biologics, a research and development joint venture between Agronomed Pharmaceuticals, LLC and The Healing Center, for $60,000,000 in cash and stock, plus earnings and other adjustments. Agronomed’s mission is to advance the medical cannabis industry by researching and developing products that offer the best medical performance. Under Pennsylvania’s Chapter 20 Clinical Research Program, Agron is an approved Phase II clinical registrant and therefore may open a medical marijuana cultivation and processing facility and six dispensaries to conduct medical marijuana research in partnership with Drexel University College of Medicine.
Verano Holdings Corp. is a leading, vertically integrated cannabis operator with operations in multiple states across the United States, committed to the continuous improvement of public welfare by providing responsible access to regulated cannabis products. Verano aims to meet vital health and well-being needs and produces a full range of high quality innovative products sold under a portfolio of trusted consumer brands: Verano, Avexia, Encore and MÜV™. The company’s portfolio covers 14 U.S. states, with active operations in 11 of them, including nine manufacturing sites of approximately 770,000 square feet. Verano designs, builds and operates pharmacies under the Zen Leaf™ and MÜV™ brand names, providing a superior shopping experience for the medical and adult markets. For more information, see www.verano.com.
Original press release
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