Verano Holdings Closes Major Aquisition Of Assets From The Cannabist With Haste
Verano Holdings Corp., a prominent multi-state cannabis company, recently completed the strategic acquisition of three subsidiaries from The Cannabist Company Holdings Inc. The subsidiaries include two in Arizona—203 Organix, L.L.C. and Salubrious Wellness Center, Inc.—and one in Virginia—Columbia Care Eastern Virginia LLC. This acquisition marks a significant expansion for Verano, particularly in Virginia and Arizona, two key markets with substantial growth potential.
In Virginia, Verano becomes the exclusive vertical cannabis operator in Health Service Area (HSA) 5, which encompasses Eastern Virginia. This region is notable for its nearly two million residents and an influx of 14 million tourists annually. The acquisition provides Verano with an active cultivation and production facility, along with six operational dispensaries strategically located in Hampton, Norfolk, Portsmouth, Suffolk, Virginia Beach, and Williamsburg. This positions Verano to capitalize on the existing medical cannabis program in Virginia and primes the company for potential adult-use legalization, which is expected to further boost market opportunities.
In Arizona, Verano’s acquisition enhances its existing operations by adding an active cultivation and production facility, along with two new retail locations in Tempe and Prescott. These additions complement Verano’s current presence in the state, where it already operates six Zen Leaf dispensaries and multiple cultivation and processing facilities. This expansion not only increases Verano’s retail footprint but also bolsters its cultivation capacity, positioning the company to better serve the growing demand for cannabis products in Arizona.
George Archos, Verano’s founder, Chairman, and CEO, highlighted the strategic value of these acquisitions, noting the near-term growth potential in Virginia’s medical cannabis market and the opportunity for future expansion into adult use. Archos emphasized Verano’s extensive experience in mergers and acquisitions (M&A) and the company’s commitment to integrating these new facilities into its existing network efficiently. He also expressed enthusiasm for the expanded operations in Arizona, which will allow Verano to scale its retail presence and broaden access to its award-winning cannabis brands.
From the perspective of The Cannabist Company, this transaction represents a critical step in reshaping its operational footprint and improving financial stability. David Hart, CEO of The Cannabist Company, expressed confidence in Verano’s ability to enhance the operations in Virginia and Arizona and underscored the importance of the partnership in achieving these strategic objectives. The Cannabist Company will continue to maintain its operations in the Richmond region of Virginia, focusing on cultivation, manufacturing, and retail.
The financial terms of the transactions underscore the strategic importance of these acquisitions. Verano paid $15 million in cash for the Arizona operations and $90 million for the Virginia operations, which included a mix of cash, Class A subordinate voting shares, and a promissory note. These investments reflect Verano’s commitment to strengthening its position in key U.S. cannabis markets and its confidence in the growth potential of both Virginia and Arizona.
