Canadian multi-state cannabis operator Verano Holdings is gearing up to go public by means of a reverse takeover of Majesta Minerals Inc. Based in Calgary, Alberta, Majesta proudly announced that it had entered into a non-binding letter of intent with Chicago-headquartered Verano on December 7.

Majesta – a mineral exploration company that specializes in soil, water and sediment sampling, as well as geophysical surveys and prospecting services – has agreed for its shares to be replaced for subordinate voting shares of the eventual company. Those shares are projected to be worth $1 million.

In order to successfully complete its reverse takeover of Majesta, Verano’s public offering will raise between $50 million and $100 million via its newly-launched subscription receipt offering; subscription receipts will be exchanged for the new company’s subordinate voting shares upon finalization of the transaction.

Individual subscription receipts can be snapped up for $10 — prices were chosen based on Verano’s $2.8 billion pre-money valuation.

Verano’s reverse takeover of Majesta Minerals is contingent on some factors

As per the details of Verano’s reverse takeover of Majesta Minerals, a total of 14 U.S. states will be on the receiving end of the company’s services. Specifically, Verano will serve the cannabis consumer demographic with 48 of its retail stores, eight grow facilities, four CPG brands – Avexia, Encore, MÜV and Verano – as well as retail store brands Zen Leaf and MÜV.

“Our transformative combination with AltMed accelerates our vision to be one of the most innovative and profitable cannabis operators in the United States. We pride ourselves on our best-in-class core competencies of people, processes, research and products, with a strong commitment to providing a superior, customer-focused cannabis experience across our existing markets,” said the Co-Founder and CEO of Verano, George Archos, in a statement.

“Becoming a public company will give us access to capital to execute our long-term strategy of expanding into limited-license, high-growth markets and scaling both our wholesale and retail operations into new and existing markets. Since the Company’s inception, we have been disciplined cannabis operators and prudent stewards of capital with a consistent focus on profitable growth. We have a solid foundation and a thoughtful model for long-term success to deliver industry-leading EBITDA margins and sustainable value to our shareholders.”

Although the news is promising, the transaction is contingent on a number of conditions, including regulatory approvals and authorization from Majesta’s shareholders. Once the deal is closed, the resulting company’s subordinate voting shares will be featured on the Canadian Securities Exchange.

Verano will finalize its previously announced medical cannabis company merger 

Not only will the signed definitive agreement establish a business combination with Majesta but also, it confirms the finalization of Verano’s merger with numerous medical cannabis companies serving Arizona and Florida’s market — Alternative Medical Enterprises LLC,; Plants of Ruskin LLC and various other affiliated companies. 

Once the deal has been completed, the combined company will retain the name “Verano Holdings Corp.” Verano, which expects that the deals will close during the first quarter of 2021, is anticipated to become one of the three biggest multi-state operators in the U.S.