Verano To Acquire Goodness Growth For US$413 Million In All-Stock Purchase

Verano Holdings (CSE: VRNO) is looking to significantly expand its footprint across the US. The firm this morning announced that it will be acquiring Goodness Growth Holdings (CSE: GDNS), formerly known as Vireo Health, in an all-stock transaction valued at US$413 million.

The definitive arrangement entered between the two firms will see Goodness Growth shareholders receive 0.22652 Verano Class A shares per subordinate voting share held. The exchange rate implies a price per share of US$2.64, or C$3.04 per share. Goodness shareholders are expected to hold a 10.1% stake in Verano on a post-closing basis.

A US$14.875 million termination fee is also in play on the proposed transaction.

The transaction will see Verano acquire a total of 18 active dispensaries, five cultivation and processing facilities, and R&D facility, and a number of brands under the Goodness Growth banner. The purchase will also see Verano expand its footprint to include the states of New York, where the company has four medical dispensaries, a cultivation facility and a home-delivery service, Minnesota, where the firm has two license, eight operating dispensaries, and a cultivation facility, New Mexico, Maryland, and Arizona. New Mexico and Maryland consist of several dispensaries and an operating cultivation facility in each state, while Arizona consists of an 18 acre outdoor production facility.

A special meeting of shareholders related to the transaction is expected to be held within the next 120 days to approve the acquisition.

Verano Holdings last traded at $13.40 on the CSE.


Information for this briefing was found via Sedar and the companies mentioned. 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.

Video Articles

Is Gold’s Bull Market About to Hit Junior Stocks? | Ken Armstrong – Westhaven Gold

Surge Battery Metals: The Nevada North Lithium PEA

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Verano Holdings To Spend US$175.5 Million Acquiring Permits In Pennsylvania

Verano Holdings (CSE: VRNO) is continuing to buy up assets south of the border. The...

Thursday, April 22, 2021, 08:49:11 AM

Verano Sources Additional US$100 Million Under Credit Facility

Verano Holdings (CSE: VRNO) appears to again need further funding. After upsizing a credit facility...

Wednesday, February 2, 2022, 07:47:31 AM

Verano: Haywood Securities Reiterates $36 Price Target

Earlier this week, Verano Holdings (CSE: VRNO) reported its first-quarter financial results. The company reported...

Friday, May 21, 2021, 10:31:00 AM

Verano: Beacon Initiates Before Listing With C$32 Price Target, Buy Rating

Verano Holdings (CSE: VRNO) is due to debut on the CSE on February 17th. The...

Tuesday, February 16, 2021, 04:02:00 PM

Verano: Canaccord Drops Price Target After Revenue Miss

On November 16th, Verano Holdings (CSE: VRNO) announced its third quarter financial results. The company...

Thursday, November 18, 2021, 11:44:00 AM