Form 4: Verano Holdings COO Sells Shares to Cover Tax Obligations and Under 10b5-1 Plan

Edward Aloysious McDermott III, Chief Operating Officer of Verano Holdings Corp., sold shares to cover tax obligations and under a pre-arranged 10b5-1 trading plan.

Summary

• Edward Aloysious McDermott III, the Chief Operating Officer of Verano Holdings Corp., sold Class A Subordinate Voting Shares on June 14, 2024, and June 18, 2024.
• On June 14, 2024, 28,690 shares were sold at a weighted average price of $3.6066 per share.
• These shares were sold to cover tax withholding obligations related to the settlement of previously granted Restricted Stock Units.
• The sale was not a discretionary sale by the Reporting Person but was effected pursuant to sell-to-cover transactions at the Company's sole discretion as agreed to by the Reporting Person in grant agreements signed upon the initial issuance of Restricted Stock Units on (i) February 16, 2022; (ii) June 23, 2022; (iii) June 1, 2023 and (iv) September 1, 2023.
• On June 18, 2024, 10,380 shares were sold at a weighted average price of $3.4054 per share under a Rule 10b5-1 trading plan adopted on September 5, 2023.
• Following these transactions, McDermott directly owns 93,173 Class A Subordinate Voting Shares.

Sentiment

Score: 5

Explanation: The document is neutral as it reports routine insider trading activity. The sales are related to tax obligations and a pre-arranged trading plan, indicating no specific negative sentiment.

Industry Context

Sales by company insiders are a common occurrence, especially to cover tax obligations related to equity compensation or as part of pre-planned trading strategies. The use of Rule 10b5-1 plans allows insiders to sell shares without being accused of trading on non-public information.

Comparison to Industry Standards

• Comparing this to other cannabis companies, insider sales are a regular event, often tied to vesting schedules and tax liabilities.
• Companies like Curaleaf and Trulieve have seen similar patterns of insider transactions.
• The amounts sold are relatively small compared to the overall market capitalization of Verano Holdings.

Stakeholder Impact

• The share sales may have a minor impact on shareholders due to the increased supply of shares in the market, but the impact is likely to be minimal given the relatively small volume of shares sold.

Key Dates