On this episode of the Trade To Black Podcast, presented by Flowhub, Anthony Varrell sits down with George Archos, Founder and CEO, and Aaron Miles, CIO, of Verano Holdings Corp (Cboe CA: VRNO; OTCQX: VRNO). On tap: a conversation on Verano’s recently announced 1-for-5 reverse stock split and what it signals about the company’s capital markets strategy in a new, uncertain time in the markets. With the consolidation set to take effect in mid-June, the move is aimed at positioning the company for a potential uplisting to a major U.S. stock exchange. We dig into the why, the timing, and what institutional access could mean for a leading multi-state operator running 162 dispensaries across 13 states.
The men framed the reverse split as one of several deliberate steps — alongside Verano’s 2025 redomiciling to Nevada and the medical reclassification transition — designed to ready the company for a major exchange listing. The technology infrastructure of major U.S. exchanges would be transformative for Verano’s stock, offering far greater protection against the manipulation and end-of-day volatility the company currently experiences.
On capital markets and institutional investors, both executives noted a renewed interest from investors who had previously stepped back from the cannabis sector, alongside new entrants drawn by the industry’s undervaluation. Miles highlighted the strategic flexibility created by Verano’s recent debt refinancing, including a $100 million credit line with no prepayment penalty and a low-rate term loan, positioning the company to move quickly as capital markets open up. A newly announced $20 million share repurchase program was cited as another tool that would become far more efficient once trading on a major exchange.
Archos says the company is focusing on domestic growth over European expansion, though he acknowledged the EU as a long-term opportunity worth monitoring. Georgia was flagged as a market poised for significant growth, particularly given its proximity to Florida. Both executives were dismissive of near-term interstate commerce prospects, arguing that states have too much financial and regulatory interest in protecting their own programs.
In headlines, Kentucky Governor Andy Beshear unilaterally expanded the state’s medical cannabis qualifying conditions through a special session, adding 15 new conditions along with pain and nausea as qualifying symptoms when linked to an existing illness. On the hemp front, companies are suing the DEA over HHC’s Schedule I classification, a move he described as a likely losing battle and a sign of growing desperation as the industry heads toward a November 12th federal hemp ban. Finally, Ayr Wellness completed the transfer of its Florida, New Jersey, and Nevada assets to Nuco, the entity controlled by its debt holders.
