CHICAGO and SARASOTA, Fla, Nov. 11, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Verano Holdings, LLC, a multi-state cannabis owner, operator and manager, has announced the signing of a definitive merger agreement to acquire and combine operations with Alternative Medical Enterprises, LLC, Plants of Ruskin, LLC, and affiliated companies (collectively, AltMed), vertically-integrated cannabis companies that apply pharmaceutical industry standards to developing, cultivating, producing and dispensing medical cannabis and medical cannabis products in Florida and Arizona. The transaction is expected to result in a highly-accretive combination of Verano and AltMed with the resulting company operating under the Verano name.
Two Industry Leaders Join Forces
Verano is a multi-state owner, developer, operator and manager of cannabis cultivation, manufacturing and dispensing licenses offering innovative products to the discerning, high-end customer market. Verano produces a full suite of premium, artisanal cannabis products sold under its consumer brands, including Encore Edibles, Avexia and Verano. Verano’s Zen Leaf branded dispensary environments deliver an elevated cannabis shopping experience in both medical and adult-use markets. Active in 12 U.S. states, with 17 active retail locations and approximately 440,000 square feet of cultivation facilities, Verano has been profitable each year since its founding.
AltMed, founded in 2014 and profitable in recent years, is a fully-integrated medical cannabis company known for its robust research and development pipeline exemplified by its award-winning MÜV products and dispensaries. AltMed offers a full range of premium cannabis options developed in its vertically-integrated operations in Arizona and Florida. With 27 active retail locations, AltMed has 220,000 square feet of cultivation facilities in Florida, and 30,000 square feet in Arizona, which is rapidly expanding by an additional 50,000 square feet to meet increased demand.
This transformative transaction is expected to create a market leader in the United States by combining two profitable, fully-integrated platforms with the ability to scale by entering new markets and expanding deeper into existing key markets. The combination will accelerate Verano’s expansion into Florida and Arizona, currently among the largest and fastest-growing cannabis markets in the United States. Following the consummation of the transaction, the combined group of companies will operate under the Verano name and will have the ability to operate in 14 states, with eight cultivation facilities and 44 active retail locations. Approximately 32 additional retail locations are planned.
Expected Benefits of Planned Transformative Combination
The combination is expected to result in substantial benefits to AltMed and Verano, including the following reasons for the transaction.
Establishes Verano as one of the three largest MSOs in the United States based on 2021 internal projections compared to current FactSet 2021 consensus estimates for revenue and EBITDA.Creates a scale market leader well positioned for growth and accelerates expansion in limited license, high-growth markets – specifically Florida and Arizona.Includes a premium, comprehensive product offering encompassing both medically-focused and lifestyle. Four product brands: Verano, Avexia, Encore, and MÜV; and two retail brands: Zen Leaf and MÜV.Joins companies with aligned cultures, management teams, and core competencies of people, processes, research, and products.Increases Verano’s reputation as a manufacturer of high-quality products on a large scale by adding similar capabilities in new states.Enhances both companies’ abilities to provide a superior, patient and customer-focused cannabis experience.Combines experienced management teams with significant and diverse industry expertise including pharmaceutical, real estate, manufacturing, agriculture and hospitality, with a proven track record as disciplined cannabis industry operators and good stewards of capital.Increases the combined company’s financial profile with industry-leading margins and profitability.