MJ Biz Report: Goodness Growth vows to take legal action after Verano scraps cannabis acquisition

Goodness Growth Holdings vowed to seek “significant damages” after multistate cannabis operator Verano Holdings said on Friday that it was terminating its acquisition of the company and seeking millions of dollars in reimbursements and fees.

Minneapolis-based Goodness Growth accused Chicago-headquartered Verano in a news release of pulling the plug after Goodness refused to accept a lower purchase price.

The acquisition was valued at $413 million when the deal was first announced last February.

In its release, Goodness Growth acknowledged Verano’s repudiation of the deal, adding that “the transaction will not proceed” and the company “intends to immediately commence legal proceedings.”

Verano alleged in its own release that Goodness Growth breached covenants spelled out in the acquisition agreement.

Verano also cited “the occurrence of other termination events” and said it is seeking more than $14 million in termination fees and $3 million in transaction-expense reimbursements.

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