Verano Acquires Cannabist Company’s Assets in Virginia, Arizona for $105 Million

NEW YORK- Verano Holdings Corp., a Chicago-based cannabis operator, has reached an agreement to acquire the plant-touching operations of The Cannabist Co. in Arizona and Virginia. The acquisition, valued at $105 million in a mix of cash, stock, and promissory notes, will expand Verano’s presence to 14 U.S. markets, according to a Monday announcement.

In Arizona, Verano will invest $15 million in cash to acquire The Cannabist Co.’s cultivation site, production facility, and two retail stores in Prescott and Tempe. In Virginia, the assets include a cultivation site, a production facility, and six retail stores.

Upon finalizing the deal, Verano will:
– Pay $20 million in cash,
– Issue $40 million in Class A subordinate voting shares,
– Provide a $30 million promissory note,
totaling $90 million.

Virginia’s home delivery allowance for cannabis will position Verano as the exclusive cannabis operator in a zone covering Chesapeake, Norfolk, and Virginia Beach. However, The Cannabist Co.’s operations in the Richmond area, including an 80,000-square-foot cultivation and manufacturing space and five stores, are excluded from this deal.

This acquisition follows The Cannabist Co.’s June announcement of cost-cutting measures, including divesting assets in Florida, closing a retail store in Trinidad, Colorado, and reducing operations in New York.

Verano’s shares trade under the ticker VRNO on the Cboe Canada exchange, while The Cannabist Co., formerly Columbia Care, trades as CBSTF on Cboe Canada and over-the-counter markets.