Verano Reaches Connecticut Cannabis Market Via $113.25M Purchase Of Tuatara Owned Business

Multi-state cannabis operator Verano Holdings Corp. VRNO VRNOF confirmed Wednesday that it has signed 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.

Collectively, these acquisitions expand Verano’s presence on the East Coast with the addition of vertically integrated operations in the Connecticut cannabis market.

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.

Transactions Highlights

• The transaction to acquire 100% of the equity interests of Willow Brook Wellness, LLC, includes one active dispensary in Meriden, Connecticut;
• The transaction to acquire 100% of the equity interests of Caring Nature, LLC, includes one active dispensary in Waterbury, Connecticut;
• 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 $113.25 million in subordinate voting shares of the company upon the consummation of the transaction, $18.5 million 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. Connecticut Pharmaceutical Solutions, Inc. is a portfolio company of Tuatara Capital, L.P. TCAC

 “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 CEO said. “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.”

Price Action

Verano Holdings’ shares were trading 0.39% higher at $12.37 per share at the time of writing Wednesday morning.

Photo: Courtesy of Avery Meeker on Unsplash