Multistate cannabis operator Verano Holdings, LLC said it has agreed to acquire and combine operations with Alternative Medical Enterprises LLC, Plants of Ruskin LLC, and affiliated companies, collectively known as “AltMed”. The companies did not disclose the value of the deal.
AltMed produces and dispenses medical cannabis and medical cannabis products in Florida and Arizona. Verano noted that the combination will accelerate its expansion into these two states, currently among the largest and fastest-growing cannabis markets in the U.S.
Following the consummation of the transaction, the combined group of companies will operate under the Verano name and have the ability to operate in 14 states, with eight cultivation facilities and 44 active retail locations. The companies plan to open 32 additional retail locations.
Verano produces cannabis products sold under its consumer brands, including Encore Edibles, Avexia and Verano. The company also operates dispensaries under the Zen Leaf brand.
Verano operates in 12 U.S. states, with 17 active retail locations and about 440,000 square feet of cultivation facilities. The company has been profitable each year since its founding.
AltMed, founded in 2014, is profitable in recent years. The company is known for the MÜV brand of cannabis-infused products and dispensaries.
With 27 active retail locations, AltMed has 220,000 square feet of cultivation facilities in Florida and 30,000 square feet in Arizona, which is rapidly expanding by an additional 50,000 square feet to meet increased demand.
“The combination of Verano and AltMed is a game changer in the U.S. cannabis industry. It is expected to create one of the largest private cannabis companies with truly no redundancies in geography or operations,” said George Archos, Founder and CEO of Verano Holdings.
The combined company will be led by Archos. AltMed’s key personnel will also maintain a strong presence on the management team and board of directors, including Michael Smullen, the Chairman, CEO and Co-Founder of Alternative Medical Enterprises, LLC’s, and John Tipton, a registered CPA.
The merger deal comes eight months after Verano and cannabis company Harvest Health & Recreation agreed to mutually terminate their previously announced $850 million merger transaction, citing the “persistent challenges” in consummating the transaction as well as market conditions at that time.
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