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VERANO . Verano Announces Third Quarter 2021 Financial Results November 16 , 2021 Company reports topline sequential growth and industry - leading EBITDA while expanding national footprint¹ to over 1,000,000 square feet of active cultivation and 89 operating dispensaries during another acquisitive quarter . CHICAGO , Nov. 16 , 2021 ( GLOBE NEWSWIRE ) -- Verano Holdings Corp. ( CSE : VRNO ) ( OTCQX : VRNOF ) ( " Verano " or the " Company " ) , a leading multi - state cannabis company , today announced its results for the third quarter ended September 30 , 2021 . The financial information below is reported on a proforma , consolidated basis accounting for the AltMed acquisition as if completed on January 1 , 2021 , and all currency is in U.S. dollars . Third Quarter 2021 Financial Summary • Revenues were $ 207 million compared to $ 199 million reported in the second quarter , and $ 101 million reported in the same period one year ago , representing 4 % sequential growth and 106 % year over year . • Gross profit increased 33 % sequentially on an unadjusted basis and excluding the impact of biological assets , to $ 133 million , or 64 % of revenue , compared to $ 100 million or 50 % of revenue reported in the second quarter of 2021 . • Third quarter adjusted EBITDA was $ 111 million or 54 % of revenue compared to $ 81 million or 41 % of revenues in the prior quarter . Third quarter EBITDA on an unadjusted basis was $ 107 million or 52 % of revenues . • SG & A expense was $ 32 million or 15 % of revenue . • Net income , including the impact of biological assets , was $ 104 million . Excluding the impact of biological assets , net income was $ 15 million in the third quarter of 2021 , compared to $ 32 million reported in the second quarter of 2021 . • Cash flow from operations was $ 68 million and Free Cash Flow was $ 35 million . Third Quarter 2021 Operational Highlights • In the third quarter , Verano further expanded its retail footprint with seven new dispensaries across its core markets in Florida , Ohio , and Pennsylvania , including the first Zen Leaf storefront in Philadelphia , and a flagship drive - through dispensary in Pittsburgh . • As of the date of this earnings report , Verano has 89 operating dispensaries and 12 cultivation and production facilities¹ . • The Company closed its acquisitions of Agri - Kind and Agronomed , which added active cultivation and production while expanding its retail footprint in Pennsylvania . Subsequently , the Company has 12 active dispensaries in Pennsylvania with the ability to open six additional storefronts and a second large - scale cultivation facility which is currently under construction . • The Company maximized its retail footprint in Ohio at five dispensaries with the acquisition of Mad River Remedies in Dayton . • The Company announced the acquisition of Sierra Well , which will expand distribution in Nevada with two high - volume dispensaries in Reno and Carson City , and an additional 10,000 square feet of cultivation and production capacity in Reno , which is expected to strengthen the Company's supply chain in Northern Nevada . Subsequent Operational Highlights • Verano secured additional , non - dilutive liquidity to support further inorganic growth , upsizing its credit facility by $ 120 million while lowering its cost of capital . The restated credit agreement also provides the option for an additional $ 100 million term loan at the same non - dilutive rate . • In November , the Company announced three accretive acquisitions in Connecticut , including two active dispensaries and one 217,000 square foot cultivation and production facility . The acquisitions will position the Company for sustainable growth by accelerating vertical integration ahead of the state's transition to adult - use sales . Management Commentary " Our third quarter results demonstrated the Company's fundamental strengths , highlighted by our industry - leading bottom - line performance that included $ 111 million in adjusted EBITDA , or 54 % of revenue , and 33 % sequential growth in gross profit , " said George Archos , Verano CEO and Founder . " We've expanded the Verano platform considerably , adding vertically integrated operations in Connecticut ahead of the adult - use transition and adding depth in Pennsylvania , Nevada and Florida . We believe that we're positioning the Company well for long - term topline growth while targeting a low - 40s EBITDA margin profile heading into 2022 and beyond . " Balance Sheet and Liquidity As of September 30 , 2021 , the Company's current assets on a consolidated basis were $ 629 million , including cash and cash equivalents of $ 57 million . The Company had working capital of $ 162 million and total debt , not including lease liabilities and net of issuance costs , of $ 148 million . Please note , this does not include the impact of the Company's recently upsized credit agreement .