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, 22 years old. April 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, said George Archos, co-founder and CEO of Verano. With our ongoing investments in Agri-Kind and Agronomed Biologics, in addition to our previously announced investments in six of the state’s top performing pharmacies, we are confident in our strategy. 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 offerings 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 involving all of the issued and outstanding shares of Agri-Kind, a 62,000-square-foot company based in Chester, and Agronomed Holdings Inc. The purchase price amounts to $66,000,000 in cash, $49,500,000 in converted shares, subject to adjustment, and a profit share 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, dedicated to continuously improving overall well-being 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 dispensaries under the Zen Leaf™ and MÜV™ brands, providing a superior cannabis purchasing experience for the medical and adult-use markets. For more information, see www.verano.com.
This press release contains certain forward-looking information within the meaning of applicable Canadian securities laws and may also contain statements that are likely to be forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not indicative of historical facts or information or current conditions, but rather reflect the Company’s beliefs regarding future events, plans or objectives, many of which are inherently uncertain and beyond the Company’s control. In general, forward-looking information or statements may be recognized by the use of forward-looking terminology such as plans, expected or not expected, budget, schedule, estimates, projections, intentions, prospects or non-prospects, or assumptions or variations of such words and phrases, or may include statements that certain actions, events or results may be undertaken, will be undertaken or will continue, will occur or will be achieved. Forward-looking information and statements contained in this document include, but are not limited to, statements or information regarding the Company’s market position, the anticipated completion or construction of the Company’s facilities, the Company’s manufacturing capacity, the completion of imminent acquisitions, the accretive nature of acquisitions, the strengthening of the Company’s presence in key markets, the ability to grow significantly organically, the creation of shareholder value and the ability to maintain industry leading performance.
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