Vireo Health Archives - Green Market Report

StaffSeptember 21, 2022
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6min3180

The Daily Hit is a recap of cannabis business news for Sept. 21, 2022.

ON THE SITE

Vireo Health Sues Minnesota Over Hemp Edibles

Medical marijuana company Vireo Health, a subsidiary of Goodness Growth Holdings (OTC: GDNSF) is fighting back against a recent loophole for edibles in the state of Minnesota. The conflict stems from a recent amendment to Minnesota laws that was enacted on July 1. The statute now allows anyone to sell edible products with up to 5 milligrams of THC derived from hemp and a THC concentration of up to 0.3% to anyone over the age of 21. The complaint against the state says that the hemp-derived edibles are chemically identical to medical cannabis-derived edibles sold by Vireo that have the same type, quantity and concentration of THC. Read more here.

Florida Issues New Medical Marijuana License To Black Farmer

On Wednesday, Florida regulators issued a long-awaited medical cannabis business license to the state’s first Black marijuana company owner, an inevitable result of a 2017 law that required the state expand the MMJ industry. The winner beat out 11 other applicants for the license, and perhaps the only certainty now is that there will be a wave of lawsuits from those who lost out, the Orlando Sentinel reported. Read more here.

Video: GMR Cannabis Tech Summit

On September 8, 2022, the Green Market Report hosted its first Cannabis Tech Summit. The Summit was sponsored by KCSA Strategic Communications, Headset, Agrify, Springbig, Zelira Pharmaceuticals, Metrc, Mattio Communications and The Bureau cannabis packaging. The event also featured the first GMR Cannabis Tech Awards. The feedback for the event was positive and especially noted the diversity of the panels and attendance as well as the panel topics. Watch now.

BLAZE Honored For Best Delivery Tech At Green Market Report Tech Awards

When delivery started to become a key part of the cannabis industry, most cannabis software solutions didn’t address it as its own consideration. Instead, they tried to be everything to everyone, and as a result, they risked not being able to deliver for operators or consumers. Enter BLAZE Solutions. The Green Market Report Tech Awards were presented following the first-ever Green Market Report Tech Summit on Sept. 8 at The Pearl event space in San Francisco. This week, we’ll be providing a closer look at the honorees. Read more here.

IN OTHER NEWS

Oklahomans Won’t Vote On Recreational Marijuana This November

After several legal battles State Question 820, the petition to legalize recreational marijuana in Oklahoma will not be on the November ballot. The Oklahoma Supreme Court denied the group’s request to allow it to go to a statewide vote, saying the organizers of SQ820 “have no clear legal right and respondents (State Election Board) have no plain legal duty” to put the petition on the Nov. 8, 2022, ballot. Read more here.

1st Circ. Declines To Review Pot Interstate Commerce Ruling

The full First Circuit on Wednesday declined to review a split panel decision that found the dormant commerce clause of the U.S. Constitution applies to the federally illegal medical marijuana industry. The decision upheld the ruling that struck down Maine’s residency requirement for cannabis licensure. Read more here.

Trulieve Wins Georgia Production License

The Georgia Access to Medical Cannabis Commission awarded Trulieve GA a Class 1 production license. Trulieve patients in Georgia will be able to choose from a variety of low-THC oil products in both oral and topical forms in the near future. Read more here.

Clever Leaves Partners With House of Kush for International Expansion

Clever Leaves Holdings (Nasdaq: CLVR), a multinational operator and licensed producer of pharmaceutical-grade cannabinoids, announced a partnership with U.S. cannabis-branded genetics company House of Kush to be the exclusive grower and distributor of proprietary genetics globally. Read more here.


Debra BorchardtMay 14, 2021
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Vireo Health International, Inc. (CSE: VREO)(OTCQX: VREOF) reported financial results for its first quarter ended March 31, 2021 . Total revenue increased 8.8% to $13.2 million over last year’s $12.1 million and includes the former subsidiaries in Pennsylvania. This beat analyst estimates from Yahoo Finance for revenue of $12.4 million. Vireo trimmed its net losses slightly to $7.0 million versus a net loss of $7.5 million in the 2020 first quarter. The company said that the improvement in net loss was primarily the result of the gain on the divestiture of its former affiliate, Ohio Medical Solutions, Inc.

“Our first-quarter results are consistent with the trends from last quarter. We continued to see double-digit sequential revenue growth excluding our former Pennsylvania subsidiaries, and substantial improvement in our gross margin due to our focus on operational efficiencies,” said Chairman and Chief Executive Officer, Kyle Kingsley , M.D. “Wholesale performance in Maryland was temporarily impacted by the move to our recently-completed 110,000 square foot cultivation facility in Massey , but our increased scale in this market will drive stronger revenue growth and profitability in the second half of the year.”

Vireo said that excluding contributions from Pennsylvania, revenue would have increased 29.8%. Retail revenue excluding Pennsylvania increased 33.7% to $10.4 million in the firat quarter and reflected growth in each of its retail markets. Wholesale revenue, excluding Pennsylvania increased by 17.4% to $2.8 million, driven by strong growth in the Arizona market.

Dr. Kingsley continued, “The phase two expansion projects we discussed last quarter in Arizona and Maryland are underway, and our teams are now aggressively focused on finalizing our expansion plans in New York . The recent passage of adult-use legislation in New York and New Mexico has improved our outlook for both of these markets, and further potential for regulatory change at local and federal levels could meaningfully impact the trajectory of our performance. We are excited by all the growth opportunity we see across our core markets, and look forward to sharing more details on our long-term outlook at our upcoming Investor Day events which we plan to announce in the coming weeks.”

After The Quarter Ended

On April 14 , the company finished its planned expansion of its cultivation and processing facility in New Mexico, which is now operating following the receipt of regulatory approval. The company also announced that two recently completed retail dispensaries in Albuquerque and Las Cruces are ready to open, pending regulatory approval. Once approved, Vireo will have four operating dispensaries in the state of New Mexico .

On April 29 , launched medical cannabis flower in the state of New York . The ground flower line is being sold in 3.5-gram and 7-gram jars and will be expanded to feature indica, sativa, and hybrid strains such as Killer Kush, Wedding Cake, and a Kosher-approved Tangie Kush. The new line of ground flower will be available at all four of the Company’s dispensaries in New York and via Home Delivery.


Debra BorchardtNovember 25, 2020
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Vireo Health International, Inc. (OTCQX: VREOF) reported that its revenue rose 67% to $11.9 million for its third quarter ended September 30, 2020 versus $7.1 million for the same time period in 2019. Net income in the third quarter was $122,252 versus a net loss of $14.6 million in the 2019 third quarter.  Vireo said the favorable improvement in net income was primarily driven by the one-time gain of $16.4 million on the divestiture of the company’s former PAMS subsidiary.

Vireo reported that it generated revenue in seven states during the third quarter: ArizonaMarylandMinnesotaNew MexicoNew YorkOhio, and Pennsylvania. Total revenue, including contributions from discontinued operations, increased 68% year-over-year to $13.4 million.  Retail revenue was approximately $9.9 million in the quarter, an increase of 61% versus $6.2 million in Q3 2019. The increase in retail revenue was principally due to greater patient enrollment and average revenue per patient in Minnesota and New Mexico, as well as contributions from retail dispensaries in Pennsylvania. Wholesale revenue of $2.0 million increased by $1.1 million as compared to $980,921 in Q3 2019, with the increase primarily driven by the growth of wholesale operations in Maryland.

“Our third-quarter results demonstrate the improving nature of our business and success of recent initiatives to improve operating and financial performance,” said Chairman and Chief Executive Officer, Kyle Kingsley, M.D. “For the past several quarters we’ve been focused on positioning our vertically-integrated portfolio of assets to produce sustained and profitable growth, and we believe today’s results are an encouraging indicator that we’re nearing a critical inflection point in cash flow generation from operations.”

EBITDA was $8.1 million during the quarter, compared to a loss of $15.9 million in 2019 for the same time period. Adjusted EBITDA was a loss of $675,808 in Q3 2020, as compared to a loss of $5.2 million in Q3 2019.

Dr. Kingsley added, “Thanks to the hard work of our teams improving costs and manufacturing efficiencies, Vireo is positioned to improve margins as we continue growing our Green Goods retail dispensary footprint and benefit from likely tailwinds of regulatory changes. Each of our current development projects remains on time and budget, and with seven new dispensaries expected to open before the end of Q1 2021 and the potential for a majority of our state-based markets to pass adult-use legislation within the next year, we believe Vireo is poised for strong improvements in revenue growth and profitability.”

Outlook

Dr. Kingsley concluded, “As we exit fiscal year 2020, we’re focused on successfully completing our capacity expansion projects in ArizonaMaryland, and New Mexico, as well as our planned dispensary openings in MarylandMinnesota, and New Mexico. However, cash inflows from the forced redemption of warrants and exercise of the PDS purchase option materialized sooner than we anticipated, and our improving liquidity position has enabled us to begin evaluating additional investment opportunities. We expect to provide the investment community with an update on development initiatives and their potential impacts to our long-term operating and financial outlook in the spring of next year.”


Debra BorchardtAugust 26, 2020
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Vireo Health International, Inc. (OTCQX: VREOF) reported that it generated revenue including contributions from discontinued operations, of $12.2 million. This was an increase of 70% over $7.2 million in the second quarter of 2019. Vireo reported revenue, excluding discontinued operations, increased 59% to $10.8 million, over $6.7 million in the 2019 second-quarter. The second-quarter net loss grew to $8.9 million, versus a net loss of $1.8 million in the 2019 second-quarter.

“Our second-quarter results were in-line with our expectations both in terms of revenue growth and operating expenses,” said Founder & Chief Executive Officer, Kyle Kingsley, M.D. “Furthermore, with the recent closing of the sale of our Pennsylvania manufacturing and processing subsidiary, we are well-positioned with a strong balance sheet to execute a strategy that should begin to generate positive cash flow next year as we continue increasing scale in our core markets of ArizonaMarylandMinnesotaNew Mexico, and New York.”

Vireo said that retail revenue was approximately $9.2 million in the quarter, an increase of 46% compared to $6.3 million in 2019. The increase in retail revenue was attributed to greater patient enrollment and average revenue per patient in Minnesota and New Mexico, as well as contributions from new retail dispensaries in Pennsylvania. Wholesale revenue of $1.6 million increased by $1.1 million or 256%, as compared to $444,023 in 2019. The increase in wholesale revenue was primarily due to the growth of wholesale operations in MarylandNew York, and Ohio.

Rising Expenses

The company reported that its total operating expenses in the second quarter rose to $15.4 million, versus $5.4 million in the second quarter of 2019, with the increase primarily attributable to increased salaries and wages, as well as an adjustment to share-based compensation related to the vesting of out-of-the-money warrants issued to a former executive upon termination from the company. Excluding depreciation and share-based compensation, operating expenses in the second quarter of 2020 were $6.0 million, or 55 percent of sales, as compared to $5.0 million or 74 percent of sales in the second quarter of 2019, and $6.2 million or 59 percent of sales in the first quarter of 2020.

Total other expenses were $3.4 million during Q2 2020, compared to $1.8 million in Q2 2019. The increase in other expense was primarily attributable to the issuance of warrants in conjunction with the private placement completed in March of 2020, as well as increased interest expense.

On June 22, 2020, the company announced the planned divestiture of its Pennsylvania manufacturing and processing operations to a subsidiary of Jushi Holdings, Inc. for a total consideration of $37 million, including $13.8 million in cash upon closing. The transaction closed on August 11, 2020, and as a result, the company had total cash on hand of approximately $21.1 million.

Dr. Kingsley continued, “We believe there is significant potential for Vireo to improve revenue growth and profitability in our core markets, and we’ll be investing in each of these markets through the balance of fiscal year 2020 to increase production capacity and retail store count. We expect the benefits of these investments to begin materializing late this year, and continue to believe that each of these markets has the potential to enact adult-use legislation over the short- to medium-term future, which would present additional opportunity for revenue growth, margin expansion, and value creation for shareholders.”

Looking Ahead

Dr. Kingsley concluded, “As we enter the second half of fiscal year 2020, we plan to leverage the strength of our balance sheet to make several strategic growth investments in our markets in ArizonaMarylandMinnesota, and New Mexico. We expect to invest approximately $8.0 to $9.0 million in these projects and that they will be completed by the end of the first quarter of fiscal year 2021. Once complete, these investments should help drive stronger revenue growth and profitability, which gives confidence in our ability to begin producing positive cash flow around the mid-point of fiscal year 2021.”


Julie AitchesonAugust 26, 2020
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With unionization becoming ever more common in the cannabis industry, Labor Day 2020 provides an opportunity to take a closer look at the state of cannabis labor unions in the U.S.  Across industries, labor unions organize members and offer access to group health insurance, provide legal compliance and other assistance, help negotiate annual raises and higher wages, and often provide discounts through partner businesses. The International United Food and Commercial Workers Union (UFCW- working not just in the representation of businesses, but advocacy, coalition-building, and policy change), is regarded as the most powerful cannabis union in the country, initiating a Cannabis Workers Rising Campaign in 2010. As of March 2020, UFCW represented more than 10,000 workers in 14 states.

United Cannabis Workers, which “unionized as an independent workers union made up of small business owners, self-employed workers, and employees of small cannabis businesses”, eschews “old school union tactics” while holding a significant place in the cannabis union landscape. This landscape is differentiated from that of other industries in that it normalizes companies disclosing the fact that their employees are organizing. In cannabis, unionization is frequently seen as a way for a business to demonstrate legitimacy, however not all companies are supportive of unionizing efforts.

Michigan

In January of this year, controversy broke out over proposed labor union laws for cannabis businesses in Michigan, put forward by the state’s Marijuana Regulatory Agency. The proposal included a requirement that cannabis companies enter into “labor peace agreements” with unions before being licensed to grow, sell, or distribute cannabis. This suggested rule was met with significant opposition by industry groups and businesses, many going so far as to claim the measure thinly disguised political favor and a protection racket. This June, Michigan’s pro-union “labor peace agreement” requirement was stripped out of the proposal after a deluge of negative feedback. Many who oppose labor union laws such as these claim a violation of The National Labor Relations Act, which guarantees private-sector employees the right to form labor unions and gives unionized employees the right to strike and bargain jointly for working conditions. Opponents see labor peace agreements as “a pretense to use industry licensing to impose forced union dues on workers in violation of federal labor law.”

Supporters argue that labor peace agreement requirements result in a more stable workforce for the cannabis industry. In New York and California (where cannabis labor unions are required) cannabis industry workers are commonly acknowledged as ripe for exploitation by unethical businesses and therefore in need of union protection, while companies in states such as Michigan and Massachusetts have pushed back against unionization efforts. New England Treatment Access, one of Massachusetts’ largest cannabis companies, has been on the receiving end of numerous complaints filed by UCFW alleging anti-union efforts and retaliation against workers.   In July, about 60 New England Treatment Access, (NETA) workers in Franklin, Mass., voted to join UFCW Local 1445. With so much at stake and so much still unresolved in the cannabis regulatory sphere, cannabis labor unions and industry companies will no doubt continue this dance of compromise and conflict for many Labor Days to come.

Also in July, the Cannabis Workers Union said that 40 workers from Mayflower Medicinals joined UFCW Local 1445 because they were concerned about insufficient wages, as well as an unclear and slow response to workplace safety issues by the company in relation to the current COVID-19 health crisis, and a lack of respect by management for the work that they do at the company’s grow facility. Mayflower Medicinals is owned by iAnthus Capital Holdings, Inc. (OTC:ITUHF).

“As the cannabis industry continues to grow in Massachusetts, UFCW Local 1445 is proud to support these good jobs and the responsible employers that empower their workers in this new part of our economy,” said UFCW Local 1445 President Fernando Lemus. “These workers at Mayflower/IAnthus are an important role in the company’s success and they deserve the protections and security of a union contract.”

Vireo Health Supports Unions

In January this year, Vireo Health International, Inc. (CNSX: VREO)(OTCQX: VREOF) announced that its workers at its wholly-owned subsidiary, MaryMed, LLC  voted overwhelmingly to ratify a Collective Bargaining Agreement and officially joined the ranks of United Food and Commercial Workers Local 27 (UFCW27).

The company said that the three-year agreement would be the first medical cannabis union contract ratified in the State of Maryland. The contract would cover employees working in Vireo’s 20,000 square-foot Hurlock, Maryland-based manufacturing facility, which supplies precisely formulated medical cannabis products to third-party dispensaries throughout the state.

“As a ‘people-first’ business, Vireo is deeply committed to our employees and we are proud to be a union employer in Maryland and beyond,” said Kyle Kingsley, M.D., CEO of Vireo Health. “Our workforce is key to our company’s success and we look forward to partnering with UFCW to support legislation, such as legalizing adult-use cannabis, that will help create thousands of new middle-class jobs across Maryland.”

 


Debra BorchardtJune 16, 2020
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Vireo Health International, Inc. (OTCQX: VREOF) reported total revenue for the quarter ending in March of $12.1 million increased 34% sequentially and 110% year-over-year versus $5.8 million in the first quarter of 2019. The first-quarter net loss was $2.0 million versus the net loss of $3.4 million in the same time period in 2019. Adjusted net loss for Q1 2020 was $8.1 million, as compared to a loss of $4.8 million in the prior-year quarter.

“Our first-quarter results demonstrate the improving trajectory of our business, with sequential revenue growth of 34 percent representing the strongest quarter of growth in Vireo’s history,” said Founder & Chief Executive Officer, Kyle Kingsley, M.D. “As we continue to focus on optimizing our core medical markets, we believe there is significant untapped potential for Vireo to improve revenue growth and profitability as we increase scale in these attractive, limited-license jurisdictions.”

Expenses rose in the first quarter to $9.7 million versus $3.7 million in the first quarter of 2019, with the increase primarily attributable to increased salaries and wages, professional fees, and general and administrative expenses necessary to support the company’s growth. While the company was raising salaries for some, it also laid off 9% of its workforce. During the first quarter, the company closed its New York corporate office and the related termination of an office lease.

The company has cash on hand of $11.7 million. Total current liabilities were $7.0 million, with zero debt currently due within 12 months. The company recently completed a C$10 million private placement.

Dr. Kingsley concluded, “With most of the major development projects in our core markets effectively complete, we expect minimal capital expenditures during the remainder of the fiscal year 2020, and we should also begin to see the benefits of recent cost reduction initiatives materialize more substantially in our second-quarter results. The optionality of our valuable collection of state-based cannabis licenses and intellectual property continues to provide substantial opportunities to improve our cash position and future financial performance, and we believe our six core market strategy will enable us to begin generating positive cash flow in the first half of next year.”

The company made no mention of its recent decision to part ways with Bruce Linton. Many within the industry grumbled that the company brought in Linton in order to get the C$10 million private placement it received in March. That once it received the money, it had no need for the industry icon. Linton has his fans and detractors, but any company that aligns with him is sure to get a great deal of attention and there is no argument on that.


Debra BorchardtJune 8, 2020
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Physician-led, science-focused, multi-state cannabis company Vireo Health International, Inc. (OTCQX: VREOF) said that it has elected to terminate its employment agreement with Bruce Linton as Executive Chairman, on an entirely without-cause basis, effective immediately.

“We wish Bruce well in his future endeavors,” said Kyle Kingsley, M.D., Chief Executive Officer & Founder of Vireo. “Our organization will remain focused on executing a strategy which benefits all stakeholders and developing our core medical markets of ArizonaMarylandMinnesotaNew MexicoNew York, and Pennsylvania.” At this time, the company does not expect to fill the role of Executive Chairman.

“I like the company and pushed it hard, obviously a little too hard for everyone’s enjoyment,” Linton said on Monday. “I’m not everyone’s favorite flavor. If I invest and bring people’s money along I’m a pretty demanding guy.”

Linton is best known as the former CEO of Canopy Growth, which garnered one of the largest mainstream company investments from Constellation Brands (NYSE:STZ). Although much of that value has since been written off by Constellation after it accepted Linton’s resignation. Linton is also CEO of Collective Growth, a special purpose acquisition company that raised $150 million and has plans to list on the NASDAQ. He tapped Canopy’s former CFO to be a part of the SPAC.

“It says we can’t tell you what we’re going to do with the money cause we don’t know,” Linton said to Yahoo Finance, “but if you give it to us, we have a great management team and we think we can find some really great targets.” In regards to why he chose a name so similar to the company he co-founded and was fired from, Linton laughed. “You got to have a little fun with things,” he said.

Mr. Linton joined Vireo in November of 2019. His current term on the Board of Directors expires at the Company’s July 15, 2020, Annual General Meeting of shareholders. The incentive warrants previously issued to Mr. Linton with a November 7, 2024 expiration date will now vest with a modified expiration date of June 8, 2021.


Debra BorchardtMarch 10, 2020
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Vireo Health International, Inc. (CNSX: VREO)(OTCQX: VREOF) closed on the first tranche of a non-brokered private placement offering of 13,651,574 units of the company at a price per Unit of C$0.77 for up to a total amount of  $10 million. The stock moved higher by 2% on the news and was lately trading at 53 cents.

“This financing reflects the confidence of the capital markets in the potential growth of sales and margin for Vireo,” said Executive Chairman, Bruce Linton, who is a director and insider at Vireo. “There are significant opportunities across our existing footprint to leverage increasing scale to improve sales growth and operating performance, especially considering that we anticipate as many as seven of our medical-only state markets could enact recreational-use legislation over the near- to mid-term future.”

Vireo said it plans to use the proceeds to fund various growth initiatives, as well as for working capital and general corporate purposes. Additional tranches may be closed on or before April 17, 2020. The company said it does not expect the Warrants to be listed on any securities exchange.

Like other cannabis operators, Vireo said it has been cutting costs. The company said it has “implemented several strategic initiatives over the course of the last 90 days in order to optimize its cost structure and operating model. Since December 2, 2019, these actions have reduced corporate overhead and SG&A expenses by approximately 25 percent on an annualized basis.”

The company has been very active in 2020. It signed a Union contract for its workers in Maryland. The company also announced a partnership with CB2 Insights (CBII) in which CB2 would oversee the protocol development and Investigational New Drug (IND) Application directly with the US Food & Drug Administration (FDA).  The successful completion will position Vireo for industry leadership when it comes to cannabis-based topical medication used to treat pain.

Last month, Vireo announced a partnership with Leaf Trade to provide a wholesale order and fulfillment management platform in four states where Vireo operates. Leaf Trade is an omnichannel sales platform that allows Vireo’s wholesale business to come online quickly and easily in new markets as the Company expands its operations nationally.


William SumnerAugust 29, 2019
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It’s time for your Daily Hit of cannabis financial news for August 29, 2019.

On the Site

Tilray

Tilray, Inc.  (NASDAQ: TLRY) will be buying Alberta-based dispensary chain FOUR20 through its wholly-owned subsidiary of High Park Holdings Ltd. The recreational retail brand provides adult-use cannabis consumers with a premium retail experience focused on high-quality product selection, education, and community. FOUR20 currently operates six licensed retail locations and has 16 additional high-traffic locations secured in desirable locations in Alberta, including Canmore, Calgary, and Edmonton.

Food, Drug or Something Else: What is Hemp-Derived CBD?

It has been just over a month since the public comment period closed in the wake of the public hearing held by the FDA, “Scientific Data and Information about Products Containing Cannabis or Cannabis-Derived Compounds”. Over 4,000 comments were docketed, ranging from controlled scientific data submissions to tales of miracle cures to horror stories. It will be interesting to see what the agency gleans from the docket.

Los Angeles Bringing Back The “War on Drugs” for Illegal Commercial Cannabis Activity

Bringing Back The War – A bit of background on illegal storefront dispensaries tells us And the enforcement in California will come from both state and local authorities. The City of Los Angeles recently launched a massive crackdown on unlicensed, illegal cannabis businesses, filing misdemeanor charges against more than 500 people and shutting down 105 illegal cannabis businesses, including cultivation operations, extraction labs, and delivery companies across the city

In Other News

Cansortium

Cansortium Inc. (CSE:TIUM.U) (OTCQB: CNTMF) reported its second quarter revenue today. Consolidated revenue increased to $6.1 million. The consolidated net loss was $5.3 million. Consolidated EBITDA was $1.8 million. “While we continued to execute our strategy to expand cultivation, processing, and dispensaries during the second quarter, a combination of unexpected delays in construction needed in order to secure final regulatory approvals at our Tampa cultivation Phase 2 expansion, as well as delays in opening certain previously planned Florida dispensaries, led to second quarter revenues that were lower than originally anticipated. As a result, we are experiencing an approximate six-month delay on our plans presented earlier in the year,” said Cansortium CEO Jose Hidalgo.

Vireo Health

Today, Vireo Health International, Inc. (CNSX: VREO) (OTCQX: VREOF) reported its financial results for the second quarter. Operating revenue totaled $7.2 million, and the net loss was approximately $1.9 million.  EBITDA and adjusted EBITDA were $0.8 million and $2.3 million, respectively. “Increasing patient enrollment in Minnesota and New York continued contributing to organic revenue growth during the second quarter, and wholesale demand trends in Maryland and Pennsylvania have also been encouraging signs that our products can compete effectively within a broader marketplace,” said Vireo Founder and CEO, Kyle Kingsley.

Gabriella’s Kitchen

Gabriella’s Kitchen Inc. (CSE: GABY) also released their financial results for the quarter. Revenue was $2.5 million, up from $319,737 in the same period in the previous year. The gross loss declined from $264,607 to $49,712. As of June 30, 2019, the company has $11.5 million in cash and $37.3 million in assets. “When we announced our target on May 7, 2019 of $35 million in pro-forma revenue for the fiscal year, we took into account that Q2 would be a slower quarter due to the delayed closing of our $20 million raise, the company’s short-term decision to allocate available capital to maintain relationships and shelf space with dispensaries, and the transitioning from a shared distribution model in Southern California to a sole distribution model, staffed with our internal salespeople,” said Margot Micallef, Founder and CEO of GABY.


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