Vireo Health Expands Maryland Operations with Purchase of 110,000 Sq. Ft. Greenhouse
- $1.3 million cash transaction expands Vireo’s Maryland cultivation capacity by nearly 12x
- Vireo to transfer cultivation license to new greenhouse; maintain existing processing facility
MINNEAPOLIS, June 19, 2020 /PRNewswire/ — Vireo Health International, Inc. (“Vireo” or the “Company”) (CNSX: VREO; OTCQX: VREOF), the science-focused, multi-state cannabis company with active operations in exclusively medical-only markets and licenses in nine states and the Commonwealth of Puerto Rico, today announced that its subsidiary company, MaryMed, LLC, has reached a definitive agreement to acquire the assets and operations of Maryland based Goose Landing Farms, Inc., for total consideration of $1.3 million. The transaction is subject to regulatory approval and customary closing conditions.
Goose Landing Farms owns and operates a 110,200 sq. ft. greenhouse facility in Massey, MD which is currently growing perennials. The site also contains an indoor area for post processing. MaryMed intends to transfer its cultivation license in the state to this newly acquired greenhouse and maintain processing and manufacturing operations at its existing 22,000 sq. ft. facility in Hurlock, MD. This planned license transfer is expected to increase MaryMed’s biomass cultivation capacity in the state by nearly 12 times once the transfer of cultivation operations is complete. Vireo anticipates completing its first harvest in the new facility during the upcoming Fall season.
This acquisition significantly increases our revenue growth potential in Maryland’s attractive medical cannabis market at a relatively low cost, and it will enable us to drive stronger profitability within this market once our retail dispensary license becomes operational.
Kyle Kingsley, M.D., Founder & Chief Executive Officer
This transaction is consistent with our objective of increasing scale in our core markets to improve margins and cash flow generation, and we’re looking forward to seeing the benefits of this acquisition on revenue growth and profitability beginning in the fourth quarter of this year.
About Vireo Health International, Inc.
Vireo Health International, Inc. is a physician-led cannabis company focused on building long-term, sustainable value by bringing the best of medicine, science, and engineering to the cannabis industry. With operations strategically located in early-stage, limited-license medical markets, Vireo manufactures pharmaceutical-grade cannabis products in environmentally-friendly greenhouses and distributes its products through its growing network of Green Goods™ retail dispensaries and hundreds of third-party locations. Its current core medical markets of New York, Minnesota, Pennsylvania, Arizona, New Mexico, and Maryland all have the potential to enact adult-use legalization in the next three to 24 months, and two additional markets in Puerto Rico and Massachusetts also have potential for commercialization. Combined with its teams’ focus on driving scientific innovation within the industry and securing meaningful intellectual property, Vireo believes it is well positioned to become a global market leader in the cannabis industry. Today, eight of its 10 markets are operational with 13 of its 32 total retail dispensary licenses open for business. For more information about the company, please visit www.vireohealth.com.