Goodness Growth Holdings Announces Planned Divestiture of Arizona Dispensary License
Company will maintain focus on wholesale channel as a low-cost producer of biomass
MINNEAPOLIS, Nov. 2, 2021 /PRNewswire/ — Goodness Growth Holdings, Inc. (“Goodness Growth”) (CSE: GDNS; OTCQX: GDNSF), a physician-led, science-focused cannabis company and IP developer, today announced that its subsidiary, Vireo Health of Arizona, LLC (“Company”), has reached a definitive agreement with Copperstate Farms, LLC (“Copperstate”), to sell its dispensary license, all remaining inventory and equipment at its Phoenix dispensary, the Phoenix dispensary property lease and all revenue producing contracts in an all-cash transaction valued at $15.0 million. The Company expects the transaction to close later this year, pending regulatory approval.
“For the past several months there has been significant interest on behalf of larger vertically-integrated operators to acquire our Phoenix dispensary,” said Chairman & Chief Executive Officer, Kyle Kingsley, M.D. “Given our presence as a predominantly wholesale supplier of biomass in the Arizona market, our management team and board of directors felt that this transaction simplified our business during a period in which we’re prioritizing resources toward the attractive opportunities we see in our other markets, especially New York and Minnesota.”
The transaction also includes related cultivation licenses for both medical and adult-use, only one of which is currently operational at the Company’s 18-acre outdoor farm in Amado, AZ, south of Tucson. Goodness Growth and has entered into a separate cultivation management services agreement with the acquirer which will allow the Company to continue cultivating and selling cannabis products through the medical and adult-use wholesale sales channels in Arizona. The cultivation management services agreement has an initial term of five years and will be subject to renewal for up to 20 years.
We originally acquired our Arizona operations in 2019, along with several other cultivation sites in the Southwestern United States, because we were attracted to strategic geographic locations with climates that were suitable for outdoor cultivation.
Goodness Growth Chairman & Chief Executive Officer, Kyle Kingsley, M.D.
We’ve since developed what we believe is one of the lowest-cost outdoor cultivation facilities in Amado, and we’re pleased to continue operating that facility and servicing the wholesale market in Arizona through our management services agreement.
About Goodness Growth Holdings, Inc.
Goodness Growth Holdings, Inc., is a physician-led, science-focused holding company whose mission is to bring the power of plants to the world. The Company’s operations consist primarily of its multi-state cannabis company subsidiary, Vireo Health, and its science and intellectual property developer, Resurgent Biosciences. The Company manufactures proprietary, branded cannabis products in environmentally friendly facilities and state-of-the-art cultivation sites and distributes its products through its growing network of Green Goods™ and other retail locations and third-party dispensaries. Its teams of more than 500 employees are focused on the development of differentiated products, driving scientific innovation of plant-based medicines, and developing meaningful intellectual property. Today, the Company is licensed to grow, process, and/or distribute cannabis in eight markets and operates 18 dispensaries across the United States. For more information about Goodness Growth Holdings, please visit www.goodnessgrowth.com.