Marijuana firm Verano plans to go public at reported $2.9 billion valuation

Multistate marijuana company Verano Holdings intends to go public on the Canadian Securities Exchange at a value of nearly $2.9 billion through a reverse takeover (RTO) of an existing, publicly held company, according to reports.

The move comes only a month after Chicago-based Verano signed a definitive agreement to acquire Florida-based Alternative Medical Enterprises (AltMed), and nine months after an $850 million deal with Arizona-based Harvest Health & Recreation collapsed.

Verano’s RTO deal would be further evidence that investors are warming again to marijuana.

Capital is loosening after some tight times as evidenced by California-based Weedmaps last week announced a deal to go public at a $1.5 billion valuation.

Verano intends to do a reverse takeover of Calgary, Alberta-based Majesta Minerals, according to BNN Bloomberg, which first reported the company’s plan to go public.

In a filing last week with Canadian securities regulators, Majesta reported that it had entered into a “non-binding letter of intent” with Verano and “further details relating to the transaction will follow upon execution of a definitive agreement.”

Verano hopes to raise about $75 million in capital from the offering, according to Crain’s Chicago Business, which cited an investor presentation.

The company didn’t respond to Marijuana Business Daily’s request for comment. But Crain’s indicated the deal is coming together quickly.

Verano currently is active in 12 states, including Illinois, New Jersey and Nevada, with 18 retail locations and 440,000 square feet of cultivation facilities.

The company is projecting revenues of $350 million-$380 million this year, according to Crain’s.

Verano’s acquisition of AltMed will create one of the country’s largest cannabis operators with 44 retail locations in 14 states.

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