Verano Holdings LLC, a U.S. multi-state cannabis operator is aiming to go public before the year ends with a staggering valuation of nearly $3 billion.
Verano was founded in 2014 and operates its cannabis business in 14 states with 1,600 employees, 46 retail locations, and eight production facilities.
BNN Bloomberg has reported that according to a term sheet distributed to investors, Verano is planning to offer up to US$75 million in shares through a reverse takeover of Majesta Minerals Inc.
Majesta Minerals is a shell company listed on the Canadian Securities Exchange. This would value the company at US$2.88 billion. Canaccord Genuity and Beacon Securities are joint book runners on the deal.
If Verano completes its RTO and lists on the CSE, the company would right away become the third largest cannabis operator in the U.S. by revenue. It would be the fifth largest by valuation.
It was in November that Verano said it would acquire Alternative Medical Enterprises LLC, a cannabis operator with assets in Florida and Arizona. Terms of the deal were not disclosed.
The company generated $121 million in revenue and $42 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2019.
According to the company’s estimates, it will end 2020 with as much as $380 million in revenue and $160 million in adjusted EBITDA, according to an investor presentation.
