Verano Holdings LLC—cannabis-based therapeutic products manufacturer and licensed supplier—is going to be acquired by Harvest Health & Recreation Inc. for $850 Million. If successful, the deal will be the largest pot deal in the U.S. till now.
Through the licenses, the merger will be able to legally operate nearly 200 facilities, which include 123 dispensaries, established in 16 states and union territories across the U.S., the companies revealed recently. It is anticipated that over 70 dispensaries, 13 manufacturing services, and 13 cultivation facilities would come in operation by the end of this year.
Jason Vedadi—chief executive of Harvest—stated that the accomplishment of the deal will push the company towards a leading position in the U.S. extended cannabis market.
Investors’ concern regarding cannabis market has been shifting hurriedly from Canada—where the administration has permitted the legal use of recreational pots since October—to the U.S. Based on the federal regulations, the cannabis use is illegal, but many states of the nation are legalizing. BDS Analytics and Arcview Market Research reported that by the Year 2022, the sales generated through legal cannabis trading across the U.S. will possibly reach $22.2 Billion; while Canadian consumers are expected to spend $5.9 Billion during the same period.
Harvest will give an opportunity to Verano investors by offering them both multiple voting and subordinate shares worth $850 Million, based on share value of Canadian $8.79. The stock of Harvest associated with the Canadian Securities Exchange was reached to share price of Canadian $9.47, after gaining a hike of 10%.
Harvest is the third largest U.S.-based cannabis firm with the market capitalization of $1.98 Billion. Curaleaf Holdings Inc. and Green Thumb Industries Inc. are the top two leading cannabis firms established in the U.S.