Verano to Acquire Goodness Growth, Expand into New York and New Mexico Markets
Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), a vertically-integrated, multi-state cannabis operator, and Goodness Growth Holdings, Inc. (CSE: GDNS; OTCQX: GDNSF), a holding company engaged in cultivating, producing, and selling medical cannabis, have reached an agreement, based on which Verano would obtain all the shares (both outstanding and issued) of Goodness.
The entire acquisition would be paid for in fully diluted shares valued at about 413 million US dollars.
According to the agreement, every shareholder of Goodness Growth Holdings, who holds a restricted share that includes a right to vote, will get 0.22652 of a Class A subordinate voting share of Verano, for each of those shares he holds.
And every shareholder of those Goodness shares which give their owners multiple voting rights, and those shares which give the owners super-voting rights, will get 22.652 of Verano shares for each of the Goodness shares with multiple voting rights and each of the Goodness share with super-voting rights.
Fully functional units that are operated by Goodness Growth consist of 18 dispensaries; five facilities for cultivating and processing cannabis; and one R & D facility for innovation and improvement of its products.
The well-known brands of Goodness are Vireo Spectrum containing medical cannabis extracts with strain-specific terpenes; 1937 containing professional-grade strains of cannabis; LiteBud which is a pre-rolled cone; Amplifi which is cannabis flower; Kings & Queens; and Hi-Color.
By acquiring Goodness, Verano will be able to expand its operation to markets that include those of Minnesota, New Mexico, and New York. This expansion will increase Verano’s presence in the markets of Midwest, Southwest, and Northeast respectively, while simultaneously adding a range of well-known brands of cannabis to its product portfolio.
Verano’s founder and CEO, George Archos, stated how the company’s management had always seen New York as one of the strategic markets necessary to establish the company’s presence in the eastern coast, especially just before the opening of the adult-use marijuana market, as the company expanded its platform and crossed the landmark of running over 100 dispensaries in the country.
He added how by vertically integrating markets of Minnesota, New Mexico, and New York, Verano was setting the stage for strong future growth, incorporating new partners and colleagues into the company, and hoping to serve new customers in those states.
Kyle Kingsley, Chairman and CEO of Goodness, echoed more or less the same sentiments. According to him, his company had handpicked Verano’s team, with George Archos at its helm, after lengthy consideration, for taking his company forward to its next stage.
He highly appreciated Verano’s qualities of strong leadership, solid values, and positive operating principles, which have sustained its growth and helped it to scale new heights. Dr. Kingsley expressed confidence in the competence of Verano to create new opportunities for Goodness’s employees and to provide new experiences for its consumers and patients.