Verano Holdings To Acquire Sierra Well For US$29.0 Million

Verano Holdings (CSE: VRNO) is looking to expand its presence in Nevada. The company this morning announced that it will be acquiring Sierra Well, an operating cannabis firm that was previously set to be acquired by iAnthus Capital (CSE: IAN) back in 2019.

The acquisition will see Verano pay a total figure of US$29.0 million for the two retail dispensaries along with the cultivation and production facility operated by the company. The price to be paid is a slight improvement from the $27.6 million originally to be paid by iAnthus several years ago, with the price tag reportedly representing a 5x 2021 adjusted EBITDA multiple.

Consideration under the transaction is expected to consist of $5.6 million in the form of cash, while the remainder will be paid via the issuance of 1.5 million Class A subordinate voting shares of the company. The transaction is expected to close once all approvals have been obtained, with a more specific timeline not provided by the company.

The transaction is will bring Verano’s footprint in the state to four currently active storefronts, while a fifth location is expected to open later this summer.

Verano Holdings last traded at $18.00 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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