US-based vertically integrated cannabis company Verano launched on Tuesday with $120m from a funding round led by cannabinoid therapy developer Scythian Biosciences.
Scythian invested $88m in the round while private equity firm Serruya Private Equity supplied the other $32m.
Verano has been formed to consolidate the management of several existing businesses, including cannabis cultivation, manufacturing and retail facilities. The company will also operate dispensaries under the brand name Zen Leaf.
Furthermore, Verano will become the owner of medical cannabis producer 3 Farm Boys through a series of deals that will begin with Scythian completing an acquisition of investment firm CannCure, which owns a 60% stake in 3 Farm Boys, announced in July this year.
The CannCure acquisition will give Scythian the option to acquire the other 40% of 3 Farm Boys, and it will transfer ownership of the company to Verano in exchange for $100m worth of shares. The deals are subject to a series of regulatory approvals and are expected to close next month.
Verano will use the $120m in funding to expand across the states of Illinois, Maryland, Michigan, Nevada, Ohio, Florida and Puerto Rico, where it either maintains production facilities or is seeking licences. It has plans to enter additional US states in 2019.
George Archos, chairman and chief executive of Verano, said: “This transformative investment will fast-track our long-term goal to dominate the most important growth industry in the US.
“Even with our accelerated growth, we will remain focused on our core values of operational excellence with an unwavering commitment to producing safe, quality cannabis products for a consistent experience.”
