Cannabis firm acquires Nevada licenses
April 15, 2019
Vireo Health International, America's leading science-focused, multi-state cannabis company, announced the acquisition of two medical cannabis licenses in Nevada. The licenses, which are conditionally approved for adult-use cannabis, will enable Vireo to cultivate, manufacture, and wholesale cannabis-based products to Nevada's licensed dispensaries. This acquisition marks the tenth state in which Vireo is licensed – a milestone achieved by only a select group of multi-state operators.
"A multi-state operator's geographic footprint is a key determinant of its success, and we believe that the ten states in which Vireo is licensed to operate position the Company to deliver significant value to shareholders," said Chief Executive Officer, Kyle Kingsley, M.D. "Our expansion into Nevada also highlights our commitment to operate in adult-use markets where our physician-led team can help consumers better understand the potential health benefits of replacing opioids, alcohol, and tobacco with cannabis."
On Nov. 8, 2016, voters in Nevada passed the Regulation and Taxation of Marijuana Act (Ballot Question 2) to allow for the sale, possession, and consumption of recreational marijuana in the state for adults 21 and older. Over $250 million dollars in cannabis-based products were sold in 2018 in Nevada, according to the State's Department of Taxation.
This transaction, which was previously disclosed in the company's CSE listing statement, was financed through a combination of cash and stock and represents Vireo Health's fourth acquisition since it began trading on the Canadian Securities Exchange under the ticker symbol "VREO." Vireo Health now has more than 300 employees in ten states including Arizona, Maryland, Massachusetts, Minnesota, Nevada, New Mexico, New York, Ohio, Pennsylvania, and Rhode Island.