Verano Holdings (VRNOF) is the fifth-largest of the vertically integrated multi-state operators in the cannabis business in the U.S., notes Timothy Lutts, editor of Cabot Marijuana Investor.
The stock — a favorite idea for aggressive investors — is also the only one of the five that was still growing at triple-digit rates in the third quarter of 2021; revenues were $207 million, up 106% from the year before.
The company is also notable for having stronger adjusted EBITDA margins than its competitors, thanks to careful vertical integration, which provides the ability to self-fund expansion, unencumbered by the sale leasebacks so many competitors use — often with Innovative Industrial Properties (IIPR), my conservative Top Pick for 2021 that is still doing well.
And, Verano is notable for being the youngest stock among the top five (it only came public in April), so there are a lot of potential buyers who will discover the stock once the sector turns up again.
Headquartered in Chicago, Verano has 93 retail locations in 15 states (with over 100 more planned) as well as 12 cultivation and production facilities.
The company’s main brands are Verano (flower, pre-rolls, vapes and concentrates), Encore (gummies, hard candies, mints and chocolates), Avexia (the company’s medicinal brand, blending THC and CBD to alleviate pain and discomfort), Zen Leaf (retail dispensaries) and MÜV (medical dispensaries).
