Verano Holdings (CSE: VRNO) continued its focus on inorganic growth this morning, announcing acquisitions in three key states. The acquisitions are set to occur across the states of Illinois, Pennsylvania, and Arizona, as the company seemingly looks to acquire assets at any price.
In terms of Illinois, the company has agreed to acquire The Herbal Care Centre, a single store operation within the state that operates in Chicago. The operator reportedly has plans to open a second location as well. Consideration consists of US$17.5 million in cash as well as 904,642 equivalent Class A shares.
Total consideration on an as-converted basis amounts to C$48.3 million as of yesterday’s closing price, with the additional dispensary said to maximize the firms Illinois footprint once opened.
Meanwhile in Pennsylvania, the company has agreed to acquire TerraVida Holistic Centres and GVB Holding Group. Collectively, the two firms operate three dispensaries in the state that are located in Sellersville, Abington, and Malvern. The company has also agreed to acquire an unrelated license with one permit, enabling the opening of three more locations in the state.
For the operating dispensaries, the company has agreed to pay US$62.5 million, with $15.0 million paid upon closing, $10.0 million paid within 90 days, and the remainder paid in 180 days. Also to be issued is 3.0 million shares, bringing total consideration for the acquisition to C$166.14 on an as-converted basis.
The acquired license with no current operations meanwhile is to see consideration of US$7.4 million paid as well as 1.3 million shares. Total consideration here amounts effectively to C$47.8 million. The company upon closing will own six operational dispensaries in the state.
Finally, over in Arizona, the company has entered an arrangement with Nabis Holdings to acquire a dispensary located in Phoenix, Arizona, currently operating as Emerald Dispensary. Here the company is acquiring the “rights to manage” the dispensary.
Here, the company will pay US$11.3 million in cash, as well as issue US$11.3 million worth of Class A shares, subject to a ten day volume weighted average price. In Canadian terms, the valuation sits at roughly C$28.5 million. Upon closing, the company will have five operating dispensaries in the state.
All transactions are slated to close by early Q1 2021.
Verano Holdings last traded at $28.89 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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