Just days after Verano Holdings Corp. (CSE:VRNO) (OTCQX: VRNOF) notified Goodness Growth Holdings, Inc. (CSE:GDNS) (OTCQX: GDNSF) of its intentions to ditch a deal to acquire the Canadian cannabis producer, Goodness Growth revealed a plan to commence legal proceedings against Verano. Goodness Growth, previously known as Vireo Health International, will seek significant damages for, among other things, a material breach of the agreement, failure to discharge its obligations thereunder and a breach of good faith and honest contractual performance.
The two cannabis companies initially entered into a $413 million deal in February. Had it been executed, the acquisition would have ramped up Verano's footprint to 18 states, with active operations in 15, including 17 cultivation facilities totaling 1.3 million square feet of cultivation capacity and 111 operational dispensaries.
