Verano Upsizes Credit Agreement to US$250 Million at 8.50% With an Additional US$100 Million Option
Includes an option for an additional US$100 million with the same non-dilutive rate.
- Adds substantial, non-dilutive capital to the Company’s balance sheet, further buttressing its strong cash position.
- Supports continued execution of Verano’s near- and long-term growth strategies.
- Reduces the Company’s cost of capital with an improved, non-dilutive 8.50% rate on the upsize, compared to 9.75% on its previous upside announced in May.
- Includes an option for an additional US$100 million with the same non-dilutive rate.
- Provides liquidity and improves operational flexibility.
CHICAGO, Oct. 20, 2021 (GLOBE NEWSWIRE) -- Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced it has entered into an amendment to its existing credit agreement for additional funding of US$120 million with an 18-month maturity. The amendment brings the total outstanding senior secured term loans under the credit facility to US$250 million. The incremental credit provides non-dilutive funding of US$120 million, at an annual interest rate of 8.50%, with an option for an additional US$100 million term loan at the same non-dilutive rate. Chicago Atlantic Advisors, LLC (“Chicago Atlantic”) is the lead administrative agent and collateral agent, with participation from AFC Gamma, Inc. (“AFC Gamma”). Closing on the foregoing transaction is subject to customary conditions, contingencies, and approvals.
“Disciplined capital stewardship has always been a focal point for Verano and a key driver of our signature bottom-line performance,” said George Archos, Verano Founder and CEO. “Following the significant growth we delivered over the past two reported quarters, upsizing our credit facility supports further execution of our strategic growth plans and continued value creation for our shareholders. In partnership with Chicago Atlantic, and leveraging Verano’s strong fundamentals, we’ve again lowered our cost of capital on a non-dilutive basis. This transaction dovetails with our short- and long-term objectives to remain acquisitive and expand the Verano platform in both new and existing markets.”
John Mazarakis, Partner of Chicago Atlantic, added, "It’s been exciting to see Verano’s continued execution on its strategic vision, and we welcomed the opportunity to expand our partnership. The improved terms of the increased credit facility reflect Verano’s fundamental strengths and impressive operating performance. A steadfast commitment to profitable growth has always set Verano apart, and that was a key driver of this credit facility carrying one of the lowest costs of capital to-date in the cannabis industry.”
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About Verano
Verano Holdings Corp. is a leading, vertically-integrated, multi-state cannabis operator in the U.S., devoted to the ongoing improvement of communal wellness by providing responsible access to regulated cannabis products. With a mission to address vital health and wellness needs, Verano produces a comprehensive suite of premium, innovative cannabis products sold under its trusted portfolio of consumer brands: Verano, Avexia, Encore, and MÜV™. The company’s portfolio encompasses 14 U.S. States, with active operations in 11, which includes 11 production facilities comprising approximately 842,000 square feet of cultivation. Verano designs, builds, and operates dispensaries under retail brands Zen Leaf™ and MÜV™, delivering a superior cannabis shopping experience in both medical and adult-use markets. Learn more at www.verano.com
About Chicago Atlantic and Green Ivy Capital, LLC
Chicago Atlantic Advisers, LLC is an asset management firm specializing in direct lending and opportunistic private credit investing. Founded in 2018 by Tony Cappell, John Mazarakis, and Andreas Bodmeier, the firm seeks to capitalize on North American investment opportunities that are time-sensitive, complex, or in dislocated markets, where risk is fundamentally mispriced. Through its affiliate Green Ivy Capital, LLC, the firm manages a diversified portfolio of credit investments in the cannabis space and is actively investing across 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 favorable supply/demand fundamentals and legislative environments. AFC Gamma’s platform provides innovative and customized financing solutions through first-lien loans, mortgage loans, construction loans and bridge financings. The senior-management team of the company has a combined approximately 100 years of experience in investment management and disciplined credit investing across a range of economic cycles.
Forward Looking Statements
This press release may contain certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information and forward-looking statements may include but are not limited to statements or information with respect to the Company’s position in the marketplace, the Company’s organic and strategic growth plans, and delivery of shareholder value.
Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein, including, without limitation, the risk factors discussed in the Company's filings on SEDAR at www.sedar.com.
Any 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 that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
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Contacts:
Investors
Verano
Julianna Paterra, CFA
Director, Investor Relations
[email protected]
Media
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VP, Marketing & Communications
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Gabriella Coffey / Ryan McDougald
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