This IP-Focused MSO Expects Strong Growth in All Five of Its Core Markets

Exclusive Interview with Goodness Growth Holdings Chairman and CEO Kyle Kingsley

Vireo Health has changed its name to Goodness Growth Holdings (CSE: GDNS) (OTCQX: GDNSF), and the company expects to see significant growth in its five core markets over the next 18 to 24 months. Chairman and CEO Kyle Kingsley last spoke to New Cannabis Ventures in December 2020, and he has checked in to discuss the company’s name change, expansion plans and new avenues for IP development. The audio of the entire conversation is available at the end of this written summary.

The Name Change

The company’s name change to Goodness Growth was motivated by a desire to amplify the separation between the MSO and the IP company. The MSO will still go by the name Vireo Health on a state-by-state basis while Resurgent Biosciences will remain the name of the IP company.

The name Goodness Growth is a reflection of the company’s focus on bringing the power of plants to people, according to Kingsley. Right now, the MSO and its core markets are the priority for Goodness Growth, but it also has a long-term vision for its IP company. Resurgent Biosciences will be exploring both cannabis and psychedelics.

Team Members at One of the Company’s Green Goods-Branded Dispensaries

The company made some significant leadership changes a year and a half ago, including a new CFO. It has not made any major changes since then, according to Kingsley. Now, Goodness Growth is looking for state-specific leadership, people who have experience in mature markets.

Core Markets

The company’s multi-state operations are concentrated on five core markets: New York, Maryland, Minnesota, Arizona and New Mexico. Goodness Growth has opportunities for growth in each of these markets. New York is slated to transition to adult use in 2022. Minnesota is adding flower to its medical program. In Maryland, the company recently operationalized a 110,000-square-foot greenhouse. Arizona launched adult-use earlier this year, and adult-use is anticipated in New Mexico in early 2022.

Goodness Growth’s expansion plan for Arizona

Secondary Markets and Growth Possibilities  

Goodness Growth also has secondary markets. It has licenses or pre-licenses in Puerto Rico, Massachusetts and Nevada. The licenses could be operationalized in the future, but that is not a current priority.

The company has plenty on its plate with its core markets. If M&A does come into the picture, it will likely be limited to dispensaries in those core markets, according to Kingsley. In particular, Goodness Growth is considering acquisition opportunities in the Maryland market. Any acquisitions the company pursues will need to be accretive financially.

Goodness Growth may also be open to the possibility of participating in the merit-based license application process in limited license markets in the future, potentially in the southern U.S.

Intellectual Property

The company is expanding the scope for its IP company Resurgent Biosciences to include both cannabis and psychedelics. Resurgent Biosciences will be a long-term play. Right now, the company is using existing resources to explore possibilities in this realm, and it will likely have more announcements in the coming months, according to Kingsley.


While Goodness Growth is looking forward to federal legalization, it is planning to grow regardless of the regulatory landscape. Capital is expensive, but the company will be moving forward with expansion projects in all of its core markets, according to Kingsley.

The company has $40 million-plus in cash on its balance sheet as of its last publicly announced numbers. It closed on senior secured debt earlier this year. The first tranche was $26 million and another $20 million can be accessed, according to Kingsley.

Goodness Growth will be primarily working with real estate partners as it expands its operations. For example, the company’s large expansion in New York will be funded via debt on the real estate or a sale lease-back.

2022 Numbers

The company is projecting $140 million to $180 million in 2022 revenue. The 110,00 square feet coming online in Maryland, as well as an incremental 75,000 square feet, will be a major growth driver. The addition of flower in the Minnesota market will also help to drive growth. Adult use in New York, New Mexico and Arizona are additional drivers. Augmenting retail in states like Maryland, New York and New Mexico will be important initiatives. The team is pleased with the direction of the company’s margins, according to Kingsley.

Goodness Growth has extensive KPIs it monitors on a regular basis. For example, the company is focusing on metrics around higher THC strains and genetic diversity across its footprint.

In the short-term and mid-term, Kingsley sees the company’s MSO as a unique opportunity considering where the company could go with execution and scale over the next 24 months. Coupled with the long-term strategy of Resurgent Biosciences, he sees Goodness Growth as a compelling, synergistic opportunity.

New Cannabis Ventures provides a sponsored Investor Dashboard for Goodness Growth Holdings.

Exclusive article by Carrie Pallardy
Carrie Pallardy, a Chicago-based writer and editor, began her career covering the healthcare industry and now writes, edits and interviews subject matter experts across multiple industries. As a published writer, Carrie continues to tell compelling, undiscovered stories to her network of readers. For more information contact us.

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