Vireo's Revenue Spikes 34% In Cannabis Company's 'Strongest Quarter Of Growth'

Medical cannabis company Vireo Health International Inc. VREO VREOF released first-quarter financial results Tuesday, with revenue of $12.1 million.

That's a sequential increase of 34% and a year-over-year increase of 110%. 

Founder and CEO Kyle Kingsley called it "the strongest quarter of growth in Vireo's history" in a statement. 

"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." 

The Minneapolis-based company said it yielded operating revenue in seven states: Arizona, Maryland, Minnesota, New Mexico, New York, Pennsylvania and Ohio.

Other Highlights From Vireo

• Retail revenue of roughly $8.2 million, up by 58% year-over-year. 
• $3.9 million in wholesale revenue versus $610,881 in the corresponding quarter of 2019. 
• That's an increase of approximately 538% — credited to acquisitions of Arizona-based wholesale businesses and its operations in both Maryland and Pennsylvania. 
• Gross profit of $3.4 million before fair value adjustments, or 28% of revenue, compared to the first quarter of 2019, when gross profit equaled 37% of revenue, or $2.1 million. 
• Total operating expenses amounted to $9.7 million, up 162% year-over-year.
• A net loss of $2 million versus a net loss of $3.4 million in the same period of 2019. 

Vireo's Moves, Milestones

In March, the company raised $10 million through a private placement offering of over 13.6 million of its units.

The offering was managed by Bruce Linton, the former CEO of Canopy Growth Corp. CGC, who, until recently, served as the company's executive chairman.

Last week, Vireo said that it decided to "terminate its employment agreement" with Linton effective immediately.

In April, the company has set up a new wholly owned subsidiary, Resurgent Biosciences, Inc., with a focus on scientific advancements.

Vireo said it formed the Delaware-based corporation to put its intellectual property on the market.

Courtesy photo.