Verano Announces $100.0 Million Financing, $122.8 Million Acquisition Of Arizona Assets

Verano Holdings (CSE: VRNO) this morning announce that it will be conducting a bought deal financing. The financing, lead by Beacon Securities and Canaccord Genuity, will see the company raise C$100.0 million through the sale of special warrants of the company.

A total of 3.5 million special warrants are to be issued at a price of $28.50 per special warrant. Each warrant is to convert into one subordinate voting share of the company following the company receiving the final receipt from the Ontario Securities Commission for the filing of its final short form prospectus.

An over-allotment option has also been issued in connection with the financing, valid for 48 hours prior to the closing of the offering. The financing is currently slated to close March 11, 2021.

Verano this morning also announced that it will be expanding its Arizona footprint. The company is to acquire three active dispensaries as well as one cultivation and production facility for a total of US$7.3 million in cash as well as 4.0 million subordinate voting shares, which based on the above financing values the transaction at approximately C$122.8 million. The transaction is to occur with a number of corporations whom collectively referred to as “Territory Dispensary.”

The acquisition includes locations in Mesa, Chandler, and Gilbert, Arizona, as well as an 11,000 square foot indoor facility and an 8,100 square foot greenhouse in Winslow, Arizona, along with two real estate locations. The transactions are slated to close in late Q1, or early Q2 2021.

Verano Holdings last traded at $30.18 on the CSE.

Information for this briefing was found via Sedar, and Verano Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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