You’re reading this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news. We no longer send these by email as we did in the past, but we post this and all of the newsletters on our website here.
Friends,
Just before Christmas, this newsletter discussed how Vireo Growth is getting quite large. In late January, I profiled how Vireo Growth is extending its business. This week’s newsletters includes the six articles we have run since April 2nd, and Vireo Growth is central to two of them. Vireo Growth is big and getting bigger, but few seem to care.
I am not writing this to tell readers that they should care. In fact, while I used to include the company on my Focus List at 420 Investor, I no longer do. Earlier this month, I wrote an article for my subscribers about why I continue to watch things but not include the stock on my Focus List. Here is the summary:
I do watch VREOF, as it is now one of the largest MSOs by revenue, but it continues to fail to qualify to join the Global Cannabis Stock Index due to its low trading volumes. Over the past month, the average daily trading volume has been 251K shares, which works out to be about $100K of daily trading value. This is far below peers. Perhaps more importantly, the price currently of $0.45, which is down 26.6% year-to-date, is well below the price of the big capital raise in late 2024 at $0.625. Not only are the investors not winning, but VREOF hsa handed out a lot of stock to sellers, and they are underwater as well.
Perhaps Vireo Growth’s stock will reward its holders, or perhaps it will continue to fail to do so. I believe that cannabis stock investors and debt holders should be questioning why nobody seems to care about it yet. Scotts Miracle-Gro, a company that has been public since 1992 and has a market cap of $3.6 billion, took a lot of shares of VREOF as it exited Hawthorne. The 213 million shares were “at a deemed price of $0.60” per share, though VREOF hasn’t traded at $0.60 since January. When the divestiture was announced in late January, Vireo Growth had closed at $0.5553.
So, a major MSO that has revamped its management, is in many markets now and has executed on its plan to get larger through completing several acquisitions, is not yet resonating with the cannabis investment community. I do wish them the best.
Sincerely,
Alan
New Cannabis Ventures publishes curated articles as well as exclusive news. Here is what we published this past 2 weeks:
Exclusives
Cannabis Sales Failed to March
Michigan Cannabis Sales Fell Again
Mergers & Acquisitions
Aurora Cannabis Acquires Cultivator for C$26.5 Million
Glass House Brands and Vireo Growth Are Easing Into California Cannabis Combo
Organigram Global Closes European Acquisition
Vireo Growth Acquires The Hawthorne Gardening Company
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