Verano Holdings (CSE: VRNO) this morning expanded its presence in the state of Arizona. The company has entered into an arrangement to acquire control (but not actual ownership) of a single dispensary located in Phoenix, Arizona.
The transaction will see the company acquire control of that of Patient Alternative Relief Centre, whom does business as Local Joint. Following the close of the transaction, the firms retail footprint will grow to six retail dispensaries in the state.
The expansion does not come cheap however, with Verano agreeing to pay US$17.0 million for the operator, with an arrangement that will see the company “acquire the rights to manage” the facility from Flower Launch LLC. Consideration is to consist of US$10.0 million in cash at the time of closing and a US$3.5 million promissory note that comes due in 120 days, along with US$3.5 million worth of Class A subordinate voting shares.
Financial performance of the operator was not provided. The transaction is currently slated to close in late Q1 or early Q2 2021.
Verano Holdings last traded at $25.56 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.
