Verano Holdings Corp - VRNOF stock
Introduction[edit]
Verano Holdings Corp. (OTC: VRNOF, CSE: VRNO) is a vertically integrated multi-state cannabis operator in the U.S dedicated to the improvement of communal wellness by providing responsible access to moderated cannabis products. The company is engaged in the cultivation, processing, wholesale, and retail distribution of cannabis. Its operations cut across Arkansas, Arizona, California, Connecticut, Illinois, Florida, Massachusetts, Maryland, Missouri, Michigan, New Jersey, Nevada, Pennsylvania, Ohio, and West Virginia.
The company provides innovative cannabis products for adult-use and medicinal markets under its trusted portfolio of consumer brands which include Avexia, Encore, MUV, and Verano. Its common shares are publicly traded on the OTC under ‘VRNOF’ symbol. Verano Holdings is headquartered in Chicago, Illinois.[1]
Background[edit]
Verano Holdings Corp. was founded by George Archos and Sammy Dorf in 2018.[2] George Archos, the co-founder of Verano Holdings ventured into the cannabis business in 2014. He founded Ataraxia Grow and Labs in Illinois and was the first among 21 recipients, to secure a license to grow medical cannabis.[3]
The company was formed during the cannabis market boom period in the USA. Its wild success and growth in the cannabis industry is highly attributed to its bold and proactive savvy acquisition strategy, a trend activated and maintained since its inception. The company acquired Elevele in 2020 and gained control of Zen Leaf and Highland Park dispensaries.
Being a vertically integrated cannabis company, Verano Holdings exerts control on every aspect of the product from the cultivation of the plant to the processing and production of each brand. This has in the long run guaranteed high-quality, organic cannabis products to the consumers. The integrity of each brand and product has greatly contributed to Verona’s success story.[4]
Company Operations[edit]
Verano Holdings operates 131 dispensaries and 14 production facilities which comprise over 1,000,000 square feet of cultivation capacity.[5] The company designs, builds, and operates dispensaries under retail brands; Zen Leaf and MUV, distributing top-notch cannabis products to its target market.[6] The facilities are sustainably engineered to match specific seasonality and climates of the respective states. The company’s expert growers extensively tend to the nationwide cultivation portfolio to ensure each Verano plant is organic, local, and exceptionally effective. Verano’s ownership of wholesale and retail aids its distribution strategy to capture a large chunk of the market, create brand awareness, and earn customer loyalty.[7]
MUV offers free face-to-face virtual and in-store consultations to patients. Its comprehensive products range comprises chocolates and lozenges, edibles, flowers, pre-rolls, a myriad of vaporizer pens, concentrates, metered-dose inhalers, topicals, and oral sprays; together with patented encapsulation formulations in its EnCaps capsules, tinctures, 72-hour transdermal patches, and transdermal gels.[8]
Company News[edit]
Verano Holdings, on July 14, 2022, announced the opening of Zen Leaf Wheeling, its third West Virginia dispensary and 105th location nationwide. The facility is scheduled to open for business on Friday, July 15 at 11:00 a.m. local time. The move is part of a strategy to capture the forecasted $49 million in cannabis sales in West Virginia by 2026, according to the MJBiz Factbook 2022.[9]
The news closely followed the prior unveiling of MÜV Fort Myers Cypress and MÜV Sarasota Main, on Saturday, July 9, its 50th and 51st Florida dispensaries and 104th nationwide. Florida has roughly 734,000 qualified medical cannabis patients, according to Florida’s Office of Medical Marijuana Use. MJBiz Factbook 2022 projects the state’s medical marijuana sales to hit $2.5 billion by 2026.[10]
Legal Issues[edit]
Lawsuits[edit]
Naturex and BB Marketing[edit]
In January 2019, the firm faced a $135 million lawsuit in Nevada for alleged fraud in omitting its Nevada partners from a licensing round in which Verano secured 11 additional recreational cannabis store licenses. Naturex and BB Marketing claimed that the respondent defrauded them into believing the licensing applications would include all three parties. The pair also alleged that Verano misused trade secrets in filing the applications. George Archos, Verano’s CEO, however, downplayed the allegations stating that they “lacked merit” and made clear the company’s intention to aggressively defend against them.[11]
Goodness Growth Holdings[edit]
Goodness Growth is seeking $860.9 million in damages from Verano Holdings Corp. in a legal action filed in May, 2024, alleging breach of contract after Verano terminated its agreement to acquire Goodness Growth Holdings. Goodness Growth claims it continues to bear significant costs due to the failed all-stock deal, initially valued at around $413 million, which Verano allegedly wrongfully terminated. In response, Verano counterclaimed that Goodness Growth breached their "arrangement agreement" by failing to disclose important information in company documents, misleading shareholders, and refusing to obtain an updated fairness opinion on the agreement's terms. Verano further asserted that Goodness Growth owes a $14.8 million termination fee and an additional $3 million in transaction expenses.[12]
Sustainability[edit]
Through MUV, Verano’s subsidiary, the company has exhibited its intention to create positive change throughout Florida and the entire society.
- MUV has created awareness and raised funds for people diagnosed with cancer, epilepsy, and other critical conditions through its partnership with Josh Provides, Payton Wright Foundation and Children's Cancer Center.
- The company has also chaired educational programs through the University of Florida to support ongoing agricultural projects.[8]
- ↑ Yahoo Finance – VRNOF. Accessed on 7/13/2022
- ↑ Crunchbase – Verano Holdings Profile. Retrieved 7/13/2022
- ↑ About George Archos – Founder Verano Holdings. Retrieved 7/14/2022
- ↑ About Verano Holdings - FIRSTHAND. Accessed 7/14/2022
- ↑ GlobeNewswire. Verano Announces the Opening of MÜV Fort Pierce, the Company’s 70th Florida Dispensary and 131st Retail Location Nationwide. July 6, 2023.
- ↑ Verano Holdings Corp. (VRNOF) - FORM 8-K | Current report - Seeking Alpha. Retrieved on 7/13/2022
- ↑ Verano Holdings Corp Website - About VRNOF. Retrieved 7/13/2022
- ↑ 8.0 8.1 About MUV – Company Website. Accessed 7/13/2022
- ↑ Verano Announces the Opening of Zen Leaf Wheeling, the Company’s Third West Virginia Dispensary and 105th Location Nationwide – Yahoo Finance. 7/14/2022
- ↑ VERANO SURPASSES 50 DISPENSARY MILESTONE WITH THE OPENING OF MÜV FORT MYERS CYPRESS AND MÜV SARASOTA MAIN, RAISING FLORIDA FOOTPRINT TO 51 LOCATIONS STATEWIDE – Verano Website News. 7/8/2022
- ↑ Marijuana firm Verano sued for $135 million in Nevada related to licenses – MjBizDaily. Retrieved 7/14/2022
- ↑ MJBizDaily. Goodness Growth seeks $860 million from Verano in failed marijuana acquisition. May 29, 2024. Archive link.
OTC Symbol: VRNOF | OTC Tier: OTCQX International
