Cannabis MSO Verano Holdings Finalizes $12 Million Senior Mortgage Deal

Cannabis multistate operator (MSO) Verano Holdings Corp. has successfully closed a $12 million “cross-collateralized” senior mortgage deal with Rainbow Realty Group and MJ Real Estate Investment Trust. The Chicago-based company leveraged cultivation and processing properties to secure this funding.

Key Properties Used as Collateral for Financing

Verano Holdings secured the loan by putting up two industrial properties vital to its operations:

A 7.44-acre property in Coolidge, Arizona, featuring three industrial buildings spanning 51,981 square feet.

A 41,625-square-foot industrial facility on 4.86 acres in North Las Vegas, Nevada.

According to the company’s press release on Monday, both properties are essential to Verano’s cultivation, manufacturing, and processing activities, which support its wholesale and retail cannabis operations in Arizona and Nevada.

Industry Experts Highlight Importance of Real Estate Investment

“These mission-critical properties are well situated in strong real estate markets and have been updated to the highest standards,” said Tyler Gilliam, vice president of New York-based Rainbow Realty Group, in an official statement.

Rainbow Realty Group is known for providing sale-leaseback and mortgage financing solutions specifically for the cannabis industry. The Verano transaction marks Rainbow’s first investment in Arizona, bringing the company’s real estate footprint to 12 states and a total of $180 million in capital deployed.

MJ Real Estate Investment Trust’s Role in the Loan Agreement

The deal also involves MJ Real Estate Investment Trust (MJ REIT), a hybrid real estate investment trust. MJ REIT focuses on generating stable, above-market returns by investing in state-legal cannabis markets. The firm is known for prioritizing properties that serve key functions in the cannabis supply chain, making Verano’s facilities an attractive investment.

Verano Holdings’ Expanding Footprint Across the United States

With operations spanning 13 states, Verano Holdings has established itself as a major player in the legal cannabis industry. The company currently operates:

153 retail stores

15 cultivation and processing facilities

Its extensive footprint and vertically integrated business model allow Verano to maintain a strong presence in both medical and adult-use cannabis markets.

Stock Market Performance and Trading Information

Verano Holdings trades under the ticker VRNO on the Cboe Canada exchange and as VRNOF on over-the-counter (OTC) markets. The company’s ability to secure financing despite ongoing challenges in the cannabis sector highlights investor confidence in its real estate and operational strategy.

A Strategic Move for Long-Term Stability

By securing this $12 million senior mortgage, Verano Holdings reinforces its financial foundation while continuing to expand its cultivation and retail footprint. With strategic real estate investments and a strong operational presence, the company positions itself for sustained growth in the evolving cannabis industry.