Verano closes $75M (U.S.) revolving credit line

Mr. George Archos reports VERANO SECURES US $75,000,000 REVOLVING CREDIT FACILITY Verano Holdings Corp. has closed a credit agreement agented by Chicago Atlantic Admin LLC, with participation from a regional bank, to provide the company a revolving credit facility of $75-million (U.S.). Upon closing the revolver, the company drew $50-million (U.S.) to pay down $50-million (U.S.) of higher-interest-rate debt from its existing senior secured credit facility without incurring any prepayment penalty, with the remaining $25-million (U.S.) being available to finance strategic initiatives. The revolver, which is secured by selected real estate, provides Verano a range of benefits, including lower-cost debt, payoff and redraw flexibility, and optionality to have certain real estate released as collateral under the revolver. "Closing the $75-million [U.S.] revolving credit facility demonstrates our focus on fortifying the balance sheet, accessing lower-cost debt, and leveraging our owned real estate to strengthen our foundation and position Verano to take advantage of future opportunities," said George Archos, founder and chief executive officer of Verano. "We view today's closing as another important step forward in executing our capital and finance strategy that will benefit Verano, our employees and shareholders in the long term, and we look forward to making continued progress as we explore opportunities in the market." Details of the revolver are as follows: A floating annual interest rate on amounts drawn equal to SOFR (secured overnight financing rate) plus 6 per cent (subject to a 4-per-cent SOFR floor); No required amortization payments over the course of the revolver; Matures on Sept. 29, 2028, allowing for repayment at any time in $2.5-millon (U.S.) increments, subject to an interest-only make-whole if repaid before the six-month anniversary of financing; The proportionate release of certain real estate upon request and so long as the outstanding principal balance under the revolver does not exceed 60 per cent of the appraised value of the remaining pledged real estate. "Chicago Atlantic is proud to support Verano with this flexible financing solution which reflects Verano's strength across its markets," noted Peter Sack, managing partner of Chicago Atlantic. "Revolving credit facilities are common financial solutions outside of the cannabis industry, and Verano's revolver is what we believe to be the largest such facility among U.S. operators in the history of the industry, granting the company the dynamic ability to deploy and reduce higher-cost leverage as needed." About Verano Holdings Corp. Verano Holdings, one of the U.S. cannabis industry's leading companies based on historical revenue, geographic scope and brand performance, is a vertically integrated, multistate operator embracing a mission of saying yes to plant progress and the bold exploration of cannabis. Verano provides a superior cannabis shopping experience in medical and adult-use markets under the Zen Leaf and MUV dispensary banners, including Cabbage Club, an innovative annual membership program offering exclusive benefits for cannabis consumers. Verano produces a comprehensive suite of high-quality, regulated cannabis products sold under its diverse portfolio of trusted consumer brands, including Verano, (the) Essence, MUV, Savvy, Bits, Encore and Avexia. Verano's active operations span 13 U.S. states, comprising 15 production facilities with over 1.1 million square feet of cultivation capacity. We seek Safe Harbor.