Verano Holdings Corp. Announces $50 Million Share Repurchase Program

LOS ANGELES- Verano Holdings Corp., a player in the U.S. cannabis industry, has announced its first-ever share repurchase program, committing up to $50 million to buy back its publicly traded Class A subordinate voting shares. This strategic move underscores Verano’s commitment to strengthening its financial position and delivering consistent growth.

Verano Holdings Corp. has revealed that its Board of Directors has authorized the company to purchase up to $50 million worth of its Class A subordinate voting shares. According to George Archos, Chairman and CEO of Verano, this decision aligns with the company’s focus on operational excellence and capital discipline. The buyback aims to bolster the balance sheet and enhance shareholder value.

The repurchase program will operate in accordance with guidelines set by Cboe Canada and U.S. and Canadian securities laws. Verano can repurchase no more than 25% of the average daily trading volume on any given day, and the timing and pricing of share purchases must comply with Rule 10b-18 under the Securities Exchange Act of 1934. These constraints ensure that the program runs transparently and fairly without unduly influencing market prices.

One primary purpose of Verano’s share repurchase program is to provide an additional mechanism for returning cash to shareholders. Through this initiative, Verano anticipates generating increased shareholder value. The company plans to identify favorable market opportunities to repurchase shares at attractive prices, optimizing the allocation of its capital resources.

A significant motivation behind this move is Verano’s intention to strengthen its financial standing. A well-executed share repurchase program can signal to the market and investors that the company believes its stock is undervalued. By reducing the number of outstanding shares, the program can improve earnings per share (EPS) metrics and potentially attract new investments.

Verano’s dedication to maintaining high standards of operational efficiency is fundamental to its success. The share repurchase program showcases their robust market strategy and agile approach to navigating industry dynamics. By continually improving operations and deploying capital wisely, Verano positions itself for sustained revenue growth and profitability.

In addition to the share repurchase program, Verano remains open to pursuing other avenues for growth and expansion, including judicious capital expenditures, potential mergers and acquisitions (M&A), and other initiatives aimed at long-term success. By staying alert to market dislocations and opportunities, the company maintains its competitive edge and strategic agility.

Verano Holdings Corp.’s announcement of a $50 million share repurchase program marks a strategic milestone. With a focus on enhancing shareholder value and reinforcing financial health, Verano demonstrates a comprehensive approach to sustaining growth and seizing market opportunities. Stakeholders and investors can look forward to observing how these strategies unfold, positioning Verano for continued success and industry leadership.