Marijuana MSO Verano raises CA$100 million, announces Arizona acquisition

Chicago-based multistate marijuana firm Verano Holdings raised slightly more than $100 million Canadian dollars ($79.7 million) through a bought deal private placement of special warrants.

Underwriters led by Beacon Securities and Canaccord Genuity agreed to purchase 3.5 million special warrants at a price of CA$28.50 per warrant, with an option to purchase up to CA$15 million worth of additional warrants.

Each warrant is worth one subordinate voting share of Verano.

The proceeds “are expected to be used for acquisitions, working capital and general corporate purposes,” Verano noted in a Wednesday news release.

In a separate news release issued Wednesday, Verano announced a deal to acquire three Arizona marijuana dispensaries along with a cultivation and production facility.

“Pursuant to our recent go-public, we are strategically focused on expanding our presence in limited-license, high-growth markets,” Verano CEO George Archos said about the Arizona acquisition.

“Arizona recently added adult-use to its program, and we look forward to accelerating our proven, vertically integrated model to help meet rising demand.”

The deal will see a group of Arizona limited liability companies merge with Verano’s Arizona subsidiary in exchange for $7.3 million in cash and Verano shares, plus a finder’s fee worth $2.3 million in cash and shares.

The acquired retail chain, Territory Dispensary, has locations in Mesa, Chandler and Gilbert, Arizona, plus an indoor cultivation facility, a greenhouse, and other real estate.

Verano shares trade as VRNO on the Canadian Securities Exchange.

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