Verano Holdings Corp. (OTCQX: VRNOF) amended its credit agreement for its senior secured term loan of $130 million. The Restated Credit Agreement which has a maturity date of May 30, 2023, now provides for additional, non-dilutive funding of $100 million, with an annual interest rate of 9.75% for the incremental amount.
“This upsized credit facility was strategically planned to provide additional coverage of recently announced M&A activity, to enhance our overall financial position, and create flexibility for us to pursue opportunities that could drive further growth and margin expansion,” said George Archos, Verano Co-Founder, and CEO. “We very much appreciate the support of Chicago Atlantic, and the improved terms of the new facility. Being able to secure one of industry’s leading rates signals the growth in acceptance of the cannabis industry as it continues to evolve and mature.”
In making the announcement, John Mazarakis, Partner of Chicago Atlantic, noted, “We are excited to see Verano execute on its growth plan and we are looking forward to expanding our partnership. The terms of the upsized loan reflect Verano’s impressive operating performance, which resulted in this credit facility carrying one of the lowest cost of capital to-date in the industry. Verano is a clear leader in the cannabis space, and the company’s consistent focus on profitable growth is what attracted us to this opportunity.”
The company said it will release financial results for the first quarter of 2021, before the market opens on Tuesday, May 18, 2021.
Last week, Verano opened Zen Leaf West Loop, the first Zen Leaf to open within the City of Chicago. The new flagship dispensary is located in an iconic Chicago neighborhood renowned for its dynamic dining and hospitality destinations. The area, which has experienced tremendous commercial and residential growth over the last several years, is home to some of Chicago’s best restaurants and boutique hotels.
“We’re excited to open the doors on Zen Leaf’s first dispensary in Chicago, and to be able to create jobs and generate retail activity in the West Loop,” said George Archos, Co-Founder, and CEO of Verano. “Illinois’ cannabis market continues to experience significant growth as the economy reopens. We’re hopeful that Zen Leaf West Loop will be a retail destination that helps drive foot traffic to assist the neighborhood’s hospitality industry bouncing back after a very challenging year.”
Last month, the company opened its newest MÜV Dispensary located in St. Augustine, Florida. It’s the 32nd dispensary in the state and the company is now positioned as having the fourth largest retail footprint in Florida.