CHICAGO — Verano Holdings Corp.’s board of directors approved a 5-to-1 reverse split of the company’s common stock, which is expected to take effect on or about June 11. The company believes the consolidation ratio of one post-consolidation share for each five pre-consolidation shares will advance Verano on its path toward listing on a major U.S. stock exchange.
When effected, the consolidation will reduce Verano’s total issued and outstanding shares of common stock and is expected to deliver an increase in the price per share. Management also believes the split may provide additional benefits, including increasing institutional investor interest and access.
The company will not be issuing fractional post-consolidation shares. Stockholders who would otherwise hold a fractional share will receive a cash payment in lieu thereof at a price equal to that fractional share multiplied by the closing sale price on Cboe Canada on the trading day preceding the effective date of the reverse stock split.
The company currently has 364,381,806 shares of common stock outstanding, and assuming no additional shares of common stock are issued, the consolidation will reduce the issued and outstanding shares of common stock to approximately 72,876,361 shares. Any shares issued prior to the consolidation will be adjusted. Upon completion of the reverse stock split, the company anticipates its common stock will continue to trade on Cboe Canada and OTCQX.
