Page 1

VERANO . Verano Holdings Announces First Quarter 2021 Results May 18 , 2021 • First quarter 2021 revenue of $ 143 million , growth of approximately 117 % year - over - year • Gross profit margin of over 62 % for first quarter 2021 • First quarter 2021 net income of $ 126 million , including the impact of biological assets , and $ 8 million excluding the impact of biological assets • First quarter 2021 adjusted EBITDA of $ 75 million , an industry - leading 52 % margin CHICAGO , May 18 , 2021 ( GLOBE NEWSWIRE ) -- Verano Holdings Corp. ( CSE : VRNO ) ( OTCQX : VRNOF ) ( " Verano " or " the Company " ) , a leading multi - state cannabis company , today announced its financial results for the first quarter ended March 31 , 2021. The financial information below is reported on a pro forma consolidated basis accounting for the AltMed acquisition as if completed on January 1 , 2021 , and all currency is in U.S. dollars , unless otherwise noted . First Quarter 202 1 Financial Highlights • First quarter 2021 revenues increased 117 % from the first quarter 2020 to $ 143 million . • First quarter gross profit , on an unadjusted basis and not including the impact of biological assets , was $ 89 million or 62 % of revenue , compared to $ 50 million in the first quarter 2020 . • First quarter 2021 SG & A expense was $ 29 million or 20 % of revenue , compared to $ 14 million or 21 % of revenue in the first quarter 2020 . • Net income in first quarter 2021 , including the impact of biological assets , was $ 126 million compared to $ 72 million in the first quarter 2020. Excluding the impact of biological assets , net income was $ 8 million in the first quarter 2021 . • First quarter 2021 EBITDA¹ on an unadjusted basis was $ 60 million or 42 % of revenues , and Adjusted EBITDA¹ was $ 75 million or 52 % of revenues . • Cash flow from operations for first quarter 2021 was $ 42 million , and free cash flow was $ 4 million . Recent Operational Highlights • Verano completed the acquisitions of Territory , Emerald , and Local Joint , all in Arizona , giving the Company the third largest retail footprint in the state with six active storefronts plus two cultivation facilities . • The Company was upgraded to the OTCQX Best Market , which is expected to increase visibility and improve liquidity for investors , and marks another step toward maximizing long - term shareholder value . • Verano completed a private placement raising gross proceeds of approximately C $ 100 million , with warrants issued in the offering being priced at C $ 28.50 for one Class A subordinate voting share of the Company . • In first quarter 2021 , the company brought four new dispensaries online in as many states . • In April , the Company opened its second of three planned Zen Leaf dispensaries in New Jersey , where the expansion of its 120,000 sq . ft . cultivation facility is underway in anticipation of the onset of adult use sales in the state . • The Company completed acquisitions of TerraVida and The Healing Center , adding six dispensaries in Pennsylvania - three in the Philadelphia metroplex and three in the Pittsburgh metroplex - and also acquired a permit for the development of three additional dispensaries in the state . • In May , the Company upsized its existing credit facility by $ 100 million , with an industry - leading 9.75 % interest rate on a non - dilutive basis . • Verano announced it has entered into agreements for the acquisitions of Agri - Kind and Agronomed Biologics in Pennsylvania , which are expected to add an active and completely built - out , state - of - the - art 62,000 sq . ft . indoor grow facility , in addition to further developing the Company's vertically integrated footprint with a permit for six new dispensaries and a second cultivation and production facility . ( 1 ) See Non - IFRS Financial Measures below . Management Commentary " Our strong first quarter performance was foundational in nature and sets the tone for what we expect to be a transformational year . We anticipate considerable quarter - over - quarter growth in 2021 as we begin to realize the impact of accretive acquistions we've made over the last few months , in addition to broad expansion of cultivation capacity and organic retail growth , " said George Archos , Verano CEO and Founder . " I am very pleased with our accomplishments to - date , particularly how well we've executed on our growth strategy . We've expanded our retail footprint and production capacity in core markets where we've identified substantial near- and long - term upside . Our management team has risen to every occasion , effectively guiding integrations across our markets to maximize a growing talent pool , while unearthing operational efficiencies along the way . We believe we are poised to deliver on our stated objectives , to maintain an industry - leading margin profile through considerable expansion , and we expect to deliver added shareholder value into the foreseeable future . " Balance Sheet and Liquidity