Debra BorchardtJune 9, 2021
Vireo Health International, Inc. (CSE: VREO; OTCQX: VREOF) announced at this week’s investor day event that it is changing its name to Goodness Growth Holdings, Inc. The company is also changing its ticker symbol to “GDNS” on the Canadian Securities Exchange (CSE: GDNS) and on the OTCQX Market in the United States the ticker symbol will be “GDNSF” (OTCQX: GDNSF).
“Our evolution to Goodness Growth reflects the progression of our business from a predominantly early-stage, medical-market operator to one of the strongest organic growth generators across recreational-use and medical cannabis markets in the United States,” said Chairman and Chief Executive Officer, Kyle Kingsley, M.D. “Vireo always has been and will continue to be a flagship brand of medical products, but this holding company model reflects a much more expansive view of our future and clearly differentiates our plant-touching assets from our science and IP incubator, Resurgent Biosciences.”
2022 Strategy
Goodness Growth unveiled a Horizon strategy, which is its plan for growth through the fiscal year 2022. Over this timeframe, the company said it expects to open an additional 6-10 Green Goods retail dispensaries. The company also provided several additional outlook which are dependent on the on-time completion of various development projects, plus the beginning of adult-use cannabis sales in New Mexico beginning in Q1 of 2022, the start of adult-use sales in New York in the summer of 2022, and the launch of flower sales in the Minnesota medical market in the spring of 2022. The estimates are as follows:
- The company expects to generate total revenue in the range of $140 to $180 million in FY22
- The company expects to generate adjusted EBITDA in the range of $35 to $55 million in FY22
- Management reminds investors that the company had approximately $40 million in cash on its balance sheet as of March 31, 2021
- Management expects net capex, excluding financing from real estate partners, to be in the range of approximately $15 to $20 million over this planning horizon
- The company expects to begin generating positive cash flow from operations during 1H22
Dr. Kingsley continued, “We expect that recent growth investments we’ve made, combined with the expansion projects we have planned, and growth catalysts driven by changing regulatory frameworks will result in substantial improvements in revenue growth and profitability over the next 18 months. We expect to support this more than tripling of our revenue through an increase of more than 300 percent in biomass production capacity as we execute the Horizon strategy and are pleased to be showcasing the potential of our asset portfolio to investors at our investor day events later tonight and tomorrow morning.”
