Capital Infusion Will Allow Illinois Cannabis Company To Expand Facilities
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Chicago-based Verano Holdings, an operator of cannabis cultivation and retail facilities, has obtained $120M in capital for its expansion, including an $88M investment by Toronto-based Scythian Biosciences Corp. Another investor is Markham, Ontario-based Serruya Private Equity.
Besides giving Scythian a substantial stake in Verano, the deal will allow the cannabis specialist to expand in its current markets, including Illinois, Maryland, Michigan, Nevada, Ohio, Florida and Puerto Rico, with additional states to be added in 2019.
In Illinois, Verano will triple the capacity of its Albion cultivation facility by January, the Chicago Tribute reports, and expand a medical marijuana dispensary in St. Charles.
The company is seeing demand for medical marijuana in the Prairie State rise in the wake of a change in Illinois law to allow patients prescribed opioids to use medical marijuana instead.
Verano has one cultivation facility and three dispensaries in Illinois, one cultivation facility in Florida (and is allowed up to 30 dispensary facilities in that state), one cultivation facility and two dispensaries in Maryland, and one cultivation facility and a dispensary in Nevada. Verano has also applied for licenses in Michigan, Ohio and Puerto Rico.
Scythian has also agreed to sell 3 Boys Farms to Verano in exchange for $100M of Class B units in Verano.
3 Boys Farms is a Florida-based LLC authorized to cultivate, process and dispense medical cannabis. The deal is subject to approval by the Florida Department of Health, Office of Medical Marijuana Use.