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Verano to Enter Connecticut Cannabis Market with $113.25 Million Acquisition of Tuatara Owned Operator

December 3, 2021
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Verano Enters Connecticut Cannabis Market with Vertical Integration Ahead of Adult-Use Transition
  • Verano consummated the acquisition of Willow Brook Wellness, LLC, which holds an active dispensary in Meriden, Connecticut.
  • Additionally, Verano has entered into definitive agreements to acquire both Caring Nature, LLC, which holds an active dispensary in Waterbury, Connecticut, and Connecticut Pharmaceutical Solutions, Inc., which holds an operating cultivation and production facility.
  • These acquisitions are expected to be immediately accretive and accelerate vertical integration for Verano in Connecticut, one of the most recent states to pass adult-use legislation, further expanding the Company’s East Coast hub and complementing Verano’s vertically integrated regional operations in Pennsylvania, New Jersey, Maryland, and Massachusetts.
  • The Connecticut acquisitions will expand Verano’s national footprint to 89 active¹ dispensaries across 12 states, 10 of which are vertically integrated, while surpassing the 1,000,000 sq. ft. mark of total cultivation capacity.

CHICAGO, Nov. 10, 2021 (GLOBE NEWSWIRE) — Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced it has entered into multiple agreements to acquire all of the issued and outstanding equity interests of Caring Nature, LLC and Connecticut Pharmaceutical Solutions, Inc., along with the closing of its acquisition of Willow Brook Wellness, LLC.

Caring Nature owns an active dispensary in Waterbury, CT; Connecticut Pharmaceutical Solutions owns an operating cultivation and production facility in Rocky Hill, CT; and Willow Brook Wellness holds an active dispensary in Meriden, CT. Collectively, these acquisitions expand Verano’s presence on the East Coast with the addition of vertically integrated operations in the attractive Connecticut market.

We are excited about the continued expansion of both our national platform and our East Coast hub. Entering the Connecticut market ahead of its adult-use transition provides a clear runway for sustainable, long-term growth.

George Archos, Verano Founder and Chief Executive Officer
George Archos, Verano Founder and Chief Executive Officer

These acquisitions are well-aligned with our broader growth strategy, and further strengthen our operational bandwidth by bringing management teams on board that have demonstrated multi-disciplinary savvy and a keen understanding of the Connecticut market in both the retail and wholesale channels.

Transaction Highlights

Willow Brook Wellness, LLC

The transaction to acquire 100% of the equity interests of Willow Brook Wellness, LLC, includes one active dispensary in Meriden, Connecticut. The agreement was signed on September 13, 2021, and closed on October 25, 2021.

Caring Nature, LLC

The transaction to acquire 100% of the equity interests of Caring Nature, LLC, includes one active dispensary in Waterbury, Connecticut. The agreement was signed on November 10, 2021.

Connecticut Pharmaceutical Solutions, Inc.

The transaction to acquire 100% of the equity interests in Connecticut Pharmaceutical Solutions, Inc., includes an active, 216,532 sq. ft. state-of-the-art cultivation and production facility in Rocky Hill, Connecticut. Aggregate proceeds for the transaction include US$113,250,000 in subordinate voting shares of the Company upon the consummation of the transaction, US$18,500,000 in subordinate voting shares of the Company upon the first adult-use sale of cannabis in Connecticut, and additional subordinate voting shares based on achieving 2021 EBITDA performance milestones. The agreement was signed on November 10, 2021. Connecticut Pharmaceutical Solutions, Inc. is a portfolio company of Tuatara Capital, L.P.

Closing of the Caring Nature, LLC and Connecticut Pharmaceutical Solutions, Inc. transactions are each subject to customary conditions, contingencies, and approvals, including regulatory approval.

About Verano

Verano is a leading, vertically integrated, multi-state cannabis operator in the U.S., devoted to the ongoing improvement of communal wellness by providing responsible access to regulated cannabis products. With a mission to address vital health and wellness needs, Verano produces a comprehensive suite of premium, innovative cannabis products sold under its trusted portfolio of consumer brands, including Verano™, Avexia™, Encore™, and MÜV™. Verano’s portfolio encompasses 15 U.S. states, with active operations in 12, including 12 production facilities comprising over 1,000,000 square feet of cultivation. Verano designs, builds, and operates dispensaries under retail brands including Zen Leaf™ and MÜV™, delivering a superior cannabis shopping experience in both medical and adult-use markets. Learn more at www.verano.com.