💸 High Impact

Verano Closes Major Acquisition With Ease

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.

📈 Dog Walkers

Cannabis Lounges Expand In Nevada

Nevada's Cannabis Compliance Board awarded six new cannabis consumption permits through a lottery, enhancing the state’s appeal to cannabis tourists. The winners, including Kora Cannabis Lounge LLP and Nevada Consumption Lounge LLP, were all social equity applicants. The licenses remain "prospective," pending finalization. This lottery was a redo after an internal audit invalidated the initial round due to residency requirement issues. The consumption lounge market in Nevada, while growing, has yet to prove as profitable as retail sales, with industry leaders like Planet 13's Larry Scheffler expressing skepticism about its revenue potential due to product restrictions.

Source: GMR

You Can’t Deny The Data When It Comes To Legalization

Contrary to longstanding concerns that legalizing cannabis would lead to increased adolescent use, recent data demonstrates a significant decline in teen marijuana consumption over the past decade, even as nearly half of U.S. states have legalized adult-use cannabis. Federal surveys, including the National Survey on Drug Use and Health and the CDC's Youth Risk Behavioral Survey, reveal declines of 18% to 26% in various measures of teen cannabis use from 2013 to 2023. Studies in JAMA Pediatrics and the Journal of Adolescent Health confirm that state-level legalization correlates with reduced youth usage, as licensed dispensaries enforce strict age verification. This evidence underscores the effectiveness of regulated cannabis markets in balancing adult access with youth protection, contributing to rising public support for legalization.

Original Story - MM

Cansortium Reports Q2 Earnings

Cansortium Inc. (CSE: TIUM.U) (OTCQB: CNTMF), a vertically integrated cannabis company under the FLUENT™ brand, reported strong Q2 2024 financial results, highlighting year-over-year revenue growth of 12% to $27.3 million. Florida operations were a key driver, with revenues up 15% to $23.1 million. Adjusted gross profit rose to $12.3 million (48.6% margin), and adjusted EBITDA increased to $7.7 million. Despite a decrease in cash flow due to tax settlements, the company maintains a solid cash position of $8.5 million with $67.5 million in total debt. Cansortium is focused on growth, with plans for new stores and integration with RIV Capital ahead of their anticipated Q4 2024 business combination.

🗞️ The News

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📺 YouTube

All Things Cannabis w Hirsh Jain of Ananda Strategy

What we covered:

✅ On our latest Trade To Black podcast, where host Anthony Varrell will have a fireside chat with Hirsh Jain, the founder of Ananda Strategy—a consultancy advising leading cannabis brands, retailers, technology businesses, and venture capital funds across the United States, Canada, and Western Europe.

This episode will provide a comprehensive overview of the current state of rescheduling and political affairs in the cannabis industry, insights into key markets such as Ohio, and Hirsh’s perspective on what the future holds for the industry.