The bought deal, which was initially announced in July 2021, adds five active dispensaries and two cultivation and production facilities to Verano’s vertically integrated Nevada operations. The company said the locations are geographically spread across the state’s key population and tourist regions.
The acquisition is a cash and stock deal valued at $29 million with $5.6 million in cash up front.
“Today signifies a huge step forward for our business in Nevada, a state that we have long considered a core growth market and key piece of our operational footprint,” said Verano CEO George Archos.
“Gaining a presence in Reno and Carson City provides Verano with comprehensive retail and distribution opportunities in Northern Nevada that compliment our current operations in the Las Vegas area,” he said.
Under the deal, Sierra Well will become a wholly owned subsidiary of Verano.
IAnthus originally sought to acquire Sierra Well in 2019 for $27.6 million. Sierra Well at the time had unaudited annual revenue of approximately $16 million with an EBITDA (non-IFRS) margin above 20% and positive net income. One year later, iAnthus said it had terminated the agreement after facing bankruptcy, lawsuits and leadership scandals.
Chicago-based Verano has made some bold M&A moves since it went public last year, completing more than a dozen acquisitions including an all-stock deal worth $413 million for Goodness Growth Holdings in February.