June 22, 2022  — Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today is confirming that on June 17, 2022 it filed its first quarter 2022 financial statements on SEDAR that have been reviewed by its outside auditor, which replace the previously filed first quarter 2022 financial statements filed on SEDAR on May 25, 2022. The reviewed 2022 first quarter financial statements were also included in the Company’s amended Form 10 registration statement filed concurrently with the U.S. Securities and Exchange Commission.

Based on the reviewed 2022 first quarter reviewed financial statements, the Company is clarifying that the non-GAAP financial measure Free Cash Flow1 of $6 million disclosed in its May 25, 2022 earnings release included approximately $20 million of cash flow from investments. In addition, although its previously disclosed non-GAAP financial measure Adjusted EBITDA2 remained unchanged at $81 million, a reconciliation line item has been modified to reflect a currency exchange difference in “other income (expense), net.” The calculations of Free Cash Flow1 and Adjusted EBITDA2 and their reconciliation to the most comparable U.S. GAAP financial metrics are included in the tables below.

Corresponding changes to cash provided by operations and net cash used in investing activtites were included in the reviewed 2022 first quarter financial statements. These changes had no impact on the reported net increase in cash and the Company’s cash position remains unchanged with a balance of $140 million as of the March 31, 2022 quarter end.

Non-GAAP Financial Measures

Verano uses non-GAAP financial information to evaluate the performance of the Company. The terms “EBITDA”, “Adjusted EBITDA” and “Free Cash Flow” do not have any standardized meaning prescribed within U.S. GAAP and therefore may not be comparable to similar measures presented by other companies. Accordingly, this non-U.S. GAAP financial information is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP.

For the first quarter of 2022, the Company calculated EBITDA as net earnings from operations before interest expense, tax expense, depreciation, and amortization and Adjusted EBITDA as EBITDA as adjusted for one-time expenses related to other expenses, gain from investment in associates and acquisition related costs. Free Cash Flow has been calculated by the Company as cash flow from operations minus capital expenditures. The calculations of the non-GAAP financial information used in this news release and the reconciliations to the most comparable U.S. GAAP financial numbers are included in the tables below.

Management believes that this non-GAAP financial information is useful as a supplement to comparable U.S. GAAP financial information. Management reviews these non-GAAP financial measures on a regular basis and uses them, together with financial measures included in the Company’s financial statements, to evaluate and manage the performance of the Company’s operations. These measures should be evaluated only in conjunction with the comparable U.S. GAAP financial measures reported by the Company.

About Verano

Verano is a leading, vertically integrated, multi-state cannabis operator in the U.S., devoted to the ongoing improvement of communal wellness by providing responsible access to regulated cannabis products. With a mission to address vital health and wellness needs, Verano produces a comprehensive suite of premium, innovative cannabis products sold under its trusted portfolio of consumer brands, including Verano, Avexia, Encore, and MÜV. Verano’s portfolio encompasses 14 U.S. states, with active operations in 13, including 13 production facilities comprising over 1,000,000 square feet of cultivation capacity. Verano designs, builds, and operates dispensaries under retail brands including Zen Leaf and MÜV, delivering a superior cannabis shopping experience in both medical and adult-use markets. Learn more at www.verano.com.