Minnesota marijuana company Green Goods being acquired by Verano; Moorhead dispensary part of deal
The all-stock deal will have Verano take over Green Goods' operations in Minnesota, New York, Maryland, New Mexico and Arizona.
CHICAGO - The Green Goods cannabis dispensary in Moorhead is among the Goodness Growth Holdings outlets being acquired by Chicago-based Verano, according to a new release issued by Verano on Tuesday, Feb. 1.
The all-share transaction, valued at $413 million, will have Verano take over Minneapolis-based Goodness Growth’s operations in Minnesota, New York, New Mexico, Maryland and Arizona, including 18 dispensaries; five cultivation and processing facilities; a research and development facility; and several product brands, including Vireo, 1937, LiteBud, Kings & Queens, Hi-Color and Amplifi.
Verano is gaining one of only two vertical licenses in Minnesota (which allow a company to cultivate, process and sell marijuana). That includes eight active dispensaries. Beyond the Moorhead Green Goods at 104 7th St. S., Minnesota cities with dispensaries include Woodbury, Bloomington, Minneapolis, Burnsville, Blaine, Rochester, and the Duluth suburb of Hermantown.
Minnesota’s products are manufactured at Goodness’s 87,232-square-foot greenhouse in Otsego, where the company has the potential to expand onto an adjacent 20-acre parcel. The state of Minnesota recently approved the sale of smokeable flower within its medical program, with flower sales expected to begin by the end of March, followed by the introduction of certain edible products this coming summer.
Verano says the transaction will give it an unparalleled East Coast footprint with the addition of New York, where it will be one of 10 vertical license holders in the state, strengthening its position in advance of a rollout of adult-use recreational marijuana retail sales planned for this year in New York, Connecticut and New Jersey.
The addition of New Mexico also bolsters Verano’s Southwest foodprint. New Mexico is to introduce recreational marijuana sales for adults age 21 and over in April.
Once the acquisition is finalized, Verano’s footprint will span 18 states, with active operations in 15, including 17 cultivation facilities totaling 1.3 million square feet of cultivation capacity and 111 active dispensaries.
Between 2022 and 2026, the new markets are expected to generate combined revenue of more than $13.8 billion.
“We have always viewed New York as a strategic market to solidify our existing East Coast presence, particularly ahead of the state’s adult-use rollout, as we further expand the Verano platform and exceed a milestone of operating more than 100 dispensaries across the country,” said Verano founder and CEO George Archos. “Adding the New York, Minnesota and New Mexico markets to our portfolio, with full vertical integration, provides Verano with a solid foundation for future growth.”