Verano Holdings Corp (OTC:VRNOF) CIO Aaron Miles tells Benzinga that he and the Chicago-based MSO have been able to grow in the often tumultuous cannabis market through market experience and strategic execution. As such, he believes the company is well-positioned to thrive going forward.
The company has seen a busy past 12 or so months. Activity includes a December 2021 go-public transaction in Canada with 1276268 B.C. Ltd., reportedly for US$100 million. Verano completed the reverse takeover of Alberta-based Majesta Minerals Inc. as part of the deal.
In all the company has announced 16 deals in the past year or so, with 14 closed as of mid-April 2022. Deals include the February 2021 closure of the AltMed deal, first announced in November 2020.
"The number of acquisitions being 16 kind of overshadows how disciplined of a buyer we actually are in how much we are strategically building," said Miles, calling the company's strategy deliberate.
Other finalized agreements include the December 2021 acquisitions of Caring Nature, LLC and Connecticut Pharmaceutical Solutions, Inc., first announced the month prior.
More recently, in February 2022, the company announced plans to acquire Goodness Growth Holdings Inc (OTC:GDNSF) in a $413 million all-stock deal.
With a bevy of deals, Verano claims to be well-positioned to weather the cannabis market while standing out to investors. Now, with key cannabis markets coming online, Miles said the company must impress consumers in state markets and surrounding areas to keep consumer interest high.
Achieving Goals, Conveying Success
Miles noted that last year was focused on gaining investor relevancy and fighting for dollars every day.
For companies attempting to do the same, he said, "It takes time for people to really start to understand their story."
He credits his background in the space, allowing him to convey company value props and market potential. Such experience includes serving as VP of investor relations for Cresco Labs Inc (OTC:CRLBF) from 2018 to 2019.
Overall, 20-plus years of capital market experience shaped Miles' acumen. Notable non-cannabis stops include serving as Midwest regional head for the New York Stock Exchange as well as director and manager of various ventures, including Tribune Publishing Company and Abbott Laboratories (NYSE:ABT).
"That's where you really learn what a tried and true capital markets investor relations division needs to be," he said, highlighting messaging as a critical component.
Market activity in recent years may indicate Verano's potential to overcome market hurdles and stand out from the competition. Miles cited company selling points, including profitability since inception and no sale-leaseback deals, as examples of company success and potential in the future.
He said he felt the market and investors are now aware of Verano's performance potential. Calling the company's actions "as strategic as everybody else," adding that operators who stay ahead of market growth and take advantage would separate themselves from the pack.
He feels that Verano understands the market's trajectory and opportunities ahead to be one of the brands to stand out.
"I think the big thing that we're doing is positioning ourselves to take advantage of these opportunities."
Northeast Market Proving Vital
Standout opportunities include the burgeoning Northeast market, spanning various states, including New York, if the Goodness Growth deal closes.
"Patience pays off at times," Miles said with a chuckle when discussing the region's market development and the importance of patience as they come online.
The company is now scaling its operations in states like New Jersey, where it shifted an unstated amount of cap dollars to build out a 120,000-square-foot cultivation site. He said the key to success has been investing in spaces ahead of their rollout.
Looking beyond the in-state consumers, he said Verano is ready to make an impact on buyers coming in from neighboring states where adult use has not launched yet, like New York and Pennsylvania. A positive impact on those consumers could result in ready-made buyers if and when adult-use launches in those states.
"This isn't a quantity play for us," Miles noted, calling New Jersey a quality play headlined by the product consistency.
