Emerald Dispensary, a northwest Phoenix cannabis shop located at 4244 West Dunlap Avenue, has been sold to new owners.
Verano Holdings, a multi-state cannabis operation based in Chicago, has scooped up the dispensary from Nabis Holdings in a half-cash, half-stock deal worth $22.5 million.
Emerald's ownership had been the subject of a recent lawsuit. Nabis, a publicly traded firm based in Toronto, was locked in a dispute with a former director at the company who was operating the Phoenix location. Nabis had sought a temporary restraining order or a permanent injunction to keep that operator, Mark Krytiuk, from handling or receiving assets or income from the dispensary. Krytiuk allegedly "refused" to give up control.
There had also been indications that Nabis Holdings was on iffy financial footing. The company noted in September that it has had negative cash flows since its inception and has been funded largely from outside financing activities. It warned that it would need to raise additional capital over the coming year to sustain "current operations and planned developments." It had also failed in August to make a $4 million mortgage payment, on which it was at risk of defaulting.
"These factors indicate the existence of a material uncertainty that may cast significant doubt as to [Nabis's] ability to continue as a going concern," Nabis reported to its investors.
Verano Holdings, whose stock went public last week on the Canadian Stock Exchange, operates cannabis businesses in 14 states. The Emerald deal is expected to close in the next few months.