Verano Purchases 'Local Joint' In Phoenix For $17M

Verano Holdings Corp. (CSE:VRNO) is poised to acquire another dispensary in Arizona.

The Chicago-based company announced Monday it’s purchasing Patient Alternative Relief Center Inc. in Phoenix — doing business as Local Joint — for $17 million.

The move comes on the heels of securing some CA$100 million ($79.514 million) in financing.

The sum includes $10 million payable in cash upon finalizing the acquisition, a $3.5 promissory note payable within four months following the closing, and $3.5 million in stock, payable in the company’s Class A subordinate voting shares.

Under the deal, expected to close in the late first quarter or early second quarter,  Verano’s subsidiary, Verano Arizona II LLC, will obtain the rights to operate Local Joint from Flower Launch LLC.

Verano co-founder and CEO George Archos said they have been “fortunate to find like-minded partners and operators to expand our Verano family in Arizona in support of our objective to capture a leading position in the market.”

The store is located in the vicinity of the airport and university campus community.

John Vatistas, Flower Launch President, shared Archos’ enthusiasm.

“We take real pride in having transformed Local Joint from its prior iteration to the present highly active, efficient operation which attracted the notice of a sophisticated operator like Verano,” Vatistas stated.

'Meaningful Depth'

In November, Verano announced its merging with Alternative Medical Enterprises LLC, Plants of Ruskin LLC and other affiliated entities to boost its cultivation footprint in Florida and Arizona, ahead of going public in Canada in December through a reverse takeover of Majesta Minerals Inc.

Last month, the company opted to additionally boost its presence in the Copper State by purchasing three dispensaries located in Mesa, Chandler and Gilbert, as well as a Winslow-based cultivation and production facility for $7.25 million.

Most recently, Verano strengthened its retail footprint across several states, including Illinois, Pennsylvania and Arizona.

Being one of the latest states to adopt an adult-use market, Arizona is “a core market for us and will remain a priority within our national footprint going forward,” Archos said.