Vireo Health Announces Closing of Previously Announced Divestiture of Ohio Medical Solutions

Rhea-AI Summary

Vireo Health International, Inc. (CSE: VREO; OTCQX: VREOF) announced the successful sale of its former subsidiary, Ohio Medical Solutions, LLC, to Ayr Wellness, Inc. for $1.15 million in cash and a relief of $3.6 million in lease liabilities. Following this transaction, Vireo aims to enhance growth across its key markets: Arizona, Maryland, Minnesota, New Mexico, and New York. Chairman & CEO Dr. Kyle Kingsley highlighted improved operational strength and confidence in future opportunities, signaling a halt on further asset divestitures.

Positive

• Received $1.15 million in cash from the sale.
• Relieved of $3.6 million in lease liabilities.
• Focus on growth in key markets: Arizona, Maryland, Minnesota, New Mexico, and New York.
• Increased confidence in business trajectory, reducing intention for further asset sales.

Negative

• None.

MINNEAPOLIS, April 1, 2021 /PRNewswire/ -- Vireo Health International, Inc. ("Vireo" or the "Company") (CSE: VREO; OTCQX: VREOF), the science-focused, multi-state cannabis company, today announced that the sale of its former subsidiary, Ohio Medical Solutions, LLC, to Ayr Wellness, Inc. closed on March 31, 2021. In connection with the closing of the transaction, Vireo received cash proceeds of $1.15 million, and was relieved of $3.6 million in right of use liabilities affiliated with lease obligations.

"The closing of this transaction was another important milestone in the successful execution of our core market strategy, which has been focused on increasing scale in our vertically-integrated markets of Arizona, Maryland, Minnesota, New Mexico, and New York," said Chairman & Chief Executive Officer, Dr. Kyle Kingsley. "Our improving strength in these markets, combined with more favorable regulatory environments at both the local and federal levels, has improved our confidence in the overall trajectory of our business and we no longer plan to consider further divestitures of our asset portfolio as we see greater opportunities to generate more compelling value for shareholders."

About Vireo Health International, Inc.

Vireo Health International, Inc. is a physician-led cannabis company focused on bringing the best of technology, science, and engineering to the cannabis industry. Vireo manufactures proprietary, branded cannabis products in environmentally friendly facilities, 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. Vireo's team of more than 400 employees, led by scientists, engineers, and cultivation experts, is focused on efficiency and the creation of best-in-class products, while driving scientific innovation within the cannabis industry and developing meaningful intellectual property. Today, Vireo is licensed to grow and/or process cannabis in eight markets and operates 16 dispensaries nationwide. For more information about Vireo Health, please visit www.vireohealth.com.

Forward Looking Statement Disclosure

This press release contains "forward-looking information" within the meaning of applicable United States and Canadian securities legislation. To the extent any forward-looking information in this press release constitutes "financial outlooks" within the meaning of applicable United States or Canadian securities laws, such information is being provided as preliminary financial results and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking information contained in this press release may be identified by the use of words such as "potential," "plans," "is expected," "expects," "does not expect," "growing" or "foreseeable." Forward-looking information is based upon a number of estimates and assumptions of management, believed but not certain to be reasonable, in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits.

Media Inquiries	Investor Inquiries
Albe Zakes	Sam Gibbons
Vice President, Corporate Communications	Vice President, Investor Relations
albezakes@vireohealth.com	samgibbons@vireohealth.com
(267) 221-4800	(612) 314-8995

 

 

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SOURCE Vireo Health International, Inc.

FAQ

What was the financial outcome of Vireo Health's divestiture of Ohio Medical Solutions?

Vireo Health received $1.15 million in cash and was relieved of $3.6 million in lease liabilities.

Which markets is Vireo Health focusing on after the sale of Ohio Medical Solutions?

Vireo is focusing on Arizona, Maryland, Minnesota, New Mexico, and New York.

What is Vireo Health's stock symbol?

Vireo Health's stock symbol is VREOF.

When did the sale of Ohio Medical Solutions close?

The sale closed on March 31, 2021.

What did Vireo Health's CEO say about the transaction?

Dr. Kyle Kingsley described the transaction as a milestone that strengthens Vireo's operational focus in key markets.