Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced its financial results for the first quarter ending March 31, 2022 with revenue increasing 67% to $202 million versus last year. Revenue for Verano fell from the fourth quarter’s $211 million. The net loss in the first quarter 2022 was $7 million, compared to a loss of $2 million in the first quarter 2021.
George Archos, Verano Founder and Chief Executive Officer said, “We remain focused on execution, evidenced by our continued retail footprint expansion, where we added seven locations in the first quarter, including our first Zen Leaf dispensary in West Virginia. Further, the April launch of adult-use sales in New Jersey generated significant and immediate growth in the state, which is representative of similar opportunities we are poised to capitalize on in future transitioning markets in our portfolio. This summer, we are excited to add Zen Leaf Neptune as an additional adult-use dispensary in a prime Jersey Shore location, and throughout the course of 2022, we will continue to invest back in our business through a number of cultivation construction and expansion projects.”
New Jersey Sales
Verano was excited to note that New Jersey Governor Phil Murphy was at Zen Leaf Elizabeth to celebrate the start of adult-use sales in the state on April 21, 2022. Adult-use sales got underway at the company’s Zen Leaf Lawrence Township location, also on April 21, 2022, with adult-use sales at Verano’s Zen Leaf Neptune Township location expected to begin in summer 2022.
SG&A was $80 million or 40% of revenue, compared to $37 million or 30% of revenue in the first quarter 2021; excluding depreciation, amortization and M&A earnouts, SG&A was 27% of revenue, up 2% from Q4 2021 on a comparable basis.
As of March, Verano said it has cash & cash equivalents of $140 million. The company also said it drew an additional $100 million under its senior secured credit agreement, with an added option to request funding of up to $175 million.