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Verano Holdings Raises $100 Mln In Subscription Receipt Financing

Verano Holdings LLC, a Chicago-based cannabis operator, said it has raised $100 million in subscription receipt financing in connection with its go-public transaction in Canada.

In December 2020, Verano said it entered into a definitive agreement to consummate a go-public transaction in Canada that will be implemented through the reverse takeover of Alberta, Canada-based Majesta Minerals.

In addition, the transaction will include the previously announced merger of Verano with Alternative Medical Enterprises LLC; Plants of Ruskin GPS LLC; RVC 360 LLC and affiliated companies, collectively known as "AltMed".

AltMed produces and dispenses medical cannabis and medical cannabis products in Florida and Arizona.

The transaction is expected to close in February 2021. The resulting Canadian reporting company will be named "Verano Holdings Corp."

While announcing its proposed business combination with Verano in December 2020, Majesta Minerals said that a concurrent subscription receipt offering will be conducted by a special purpose financing vehicle or Finco to raise gross proceeds of between $50 million and $100 million.

Verano noted Thursday that in connection with the reverse takeover deal, 1276268 B.C. Ltd. or Finco has completed a concurrent brokered and non-brokered private placement financing of subscription receipts for gross proceeds of $100 million.

The offering was comprised of a brokered offering of 6.72 million subscription receipts for gross proceeds of $67.20 million, and a non-brokered offering of 3.28 million subscription receipts for gross proceeds of $32.80 million.

The subscription receipts will be indirectly and automatically exchanged for subordinate voting shares of Verano Holdings, the new publicly traded company.

The consummation of the transaction is subject to the approval by Majesta's shareholders. It is a condition of closing of the transaction that the subordinate voting shares of Verano Holdings be listed on the Canadian Securities Exchange.

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