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Cannabis Ventures Verano and AltMed Announce Merger
Multistate marijuana operator Verano Holdings and Florida-based Alternative Medical Enterprises (AltMed) announced a definitive agreement on November 11th for Verano to acquire AltMed for an undisclosed price. The merger, which will create one of the largest cannabis companies in the United States to date, will consist of 44 retail locations in 14 states.
Verano, an Illinois-based cannabis powerhouse which was active in 12 states prior to the deal, will adopt a strong presence in Florida’s fast-expanding medical marijuana market as well as a vertical license in the state of Arizona, where adult-use recreational marijuana was legalized on election day.
Details of the Verano AltMed Merger
While Verano said that the new company will become one of the three largest American MSOs by revenue, that information could not be verified due to both companies being financially held. Verano’s 1,000 employees will merge with AltMed’s 700, combining the resources of what Verano CEO George Achos called “very like-minded companies” in an interview with Mairjuana Business Daily.
With assets that will include operations in Illinois, Michigan, Massachusetts, Florida, and Arizona, the company will have over 700,000 square feet of cultivation space in key states. With so much room to grow in states with emerging markets, it’s no wonder that Verano expects to be a top-three MSO.
Deal Comes Amidst Recent Moves by Both Companies
In 2020, both AltMed and Verano have been attempting to make moves for growth. AltMed introduced its MÜV medical cannabis line and entered the Canadian market, while Verano ended merger talks with Harvest Health & Recreation Inc. due to obstacles posed by regulatory authorities and challenging sales environments.
In a press release, Achos called the merger a “game changer in the U.S cannabis industry.” As the combination of Verano and AltMed creates further opportunity to expand business into limited-license markets and scale of wholesale operations, the merger serves as a major power play in shaping the country’s marijuana market landscape.