Adds substantial, non-dilutive capital to the Company’s balance sheet, further strengthening its strong cash position.
Supports the continued execution of Verano’s short and long-term growth strategies.
Reduces the cost of capital of the Company with an improved and non-dilutive rate of 8.50% on the increase, against 9.75% on its previous increase announced in May.
Includes an option for an additional US $ 100 million at the same non-dilutive rate.
Provides liquidity and improves operational flexibility.
CHICAGO, Oct 20, 2021 (GLOBE NEWSWIRE) – Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) (âVeranoâ or the âCompanyâ), a leading multi-state cannabis company, today announced that it has entered into an addendum to its existing credit agreement for a additional funding of US $ 120 million with a maturity of 18 months. The amendment brings the total outstanding senior secured term loans under the credit facility to US $ 250 million. The additional credit provides non-dilutive funding of US $ 120 million, at an annual interest rate of 8.50%, with an option for an additional term loan of US $ 100 million at the same non-dilutive rate. Chicago Atlantic Advisors, LLC (âChicago Atlanticâ) is the Principal Administrative Agent and Guarantee Agent, with the participation of AFC Gamma, Inc. (âAFC Gammaâ). The closing of the above transaction is subject to customary conditions, contingencies and approvals.
âDisciplined management of capital has always been a focal point for Verano and a key driver of our core performance,â said George Archos, Founder and CEO of Verano. âFollowing the significant growth we have experienced in the last two published quarters, the increase in our credit facility supports the continued execution of our strategic growth plans and the continued creation of value for our shareholders. Partnering with Chicago Atlantic, and leveraging the strong fundamentals of Verano, we again lowered our cost of capital on a non-dilutive basis. This transaction aligns with our short and long term goals of remaining acquirers and expanding the Verano platform into new and existing markets. “
Chicago Atlantic Partner John Mazarakis added, âIt is exciting to see Verano continue to execute on its strategic vision, and we look forward to the opportunity to expand our partnership. The improved terms of the enhanced credit facility reflect Verano’s core strengths and impressive operational performance. An unwavering commitment to profitable growth has always distinguished Verano, and it was a key driver of this credit facility with one of the lowest investment costs to date in the cannabis industry.
Verano Holdings Corp. is a leading, vertically integrated, multi-state cannabis operator in the United States, dedicated to the continuous improvement of collective well-being by providing responsible access to regulated cannabis products. With a mission to meet vital health and wellness needs, Verano produces a full line of innovative and premium cannabis products sold under its portfolio of trusted brands: Verano, Avexia, Encore and MÃVâ¢. The company’s portfolio includes 14 US states, with active operations in 11, which include 11 production facilities comprising approximately 842,000 square feet of crop. Verano designs, builds and operates dispensaries under the Zen Leaf retail brandsâ¢ and MÃVâ¢, providing a superior cannabis shopping experience in the medical and adult use markets. Learn more about www.verano.com
About Chicago Atlantic and Capital of green ivy, SARL
Chicago Atlantic Advisers, LLC is an asset management company specializing in direct lending and opportunistic private lending investments. Founded in 2018 by Tony Cappell, John Mazarakis and Andreas Bodmeier, the company seeks to capitalize on North American investment opportunities that are time sensitive, complex or in dislocated markets, where risk is fundamentally mispriced. Through its subsidiary Green Ivy Capital, LLC, the company manages a diverse portfolio of cannabis lending investments and actively invests throughout the value chain.
About AFC Gamma, Inc.
AFC Gamma, Inc. (NASDAQ: AFCG) is an institutional lender to leading cannabis companies with strong operations and cash flow prospects, real estate security and other collateral, and locations in states with fundamentals of supply and demand and enabling legislative environments. AFC Gamma’s platform offers innovative and personalized financing solutions through senior loans, mortgages, construction loans and bridge financing. The company’s management team has a combined experience of approximately 100 years of investment management and disciplined investing in credit through a range of economic cycles.
This press release may contain certain “forward-looking information” within the meaning of applicable Canadian securities laws and may also contain statements which may constitute “forward-looking statements” within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform. the United States. Law of 1995. These forward-looking information and forward-looking statements are not representative of historical facts or information or the current state of affairs, but only represent the Company’s beliefs regarding future events, plans or objectives, many of which by their nature, are inherently uncertain and beyond the control of the Company. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terms such as “plans”, “expects” or “does not expect”, “is expected”, “budget” , “Intended”, “believes”, “anticipates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or may contain statements that certain actions, events or results âmayâ, âcouldâ, âwouldâ, âcouldâ or âwill be takenâ, âwill continueâ, âwill take placeâ or âwill be achieved.â Forward-looking information and forward-looking statements may include , without limitation, statements or information regarding the company’s market position, the company’s organic and strategic growth plans and the creation of shareholder value.
Forward-looking information and statements involve and are subject to assumptions and to risks, uncertainties and other known and unknown factors which may cause the actual events, results, performance or achievements of the Company to be materially different from events, results, performance, and achievements expressed or implied by the forward-looking information and statements contained herein, including, without limitation, the risk factors discussed in the documents filed by the Company on SEDAR at www.sedar.com.
All forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information or forward-looking statements contained or referenced herein. , except to the extent required by applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by this notice regarding forward-looking information and statements.
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Julianna Paterra, CFA
Director, Investor Relations
Vice-President, Marketing and Communications
[email protected] / 312-819-4852
Sard Verbinnen & Co.
Gabriella Coffey / Ryan McDougald