Goodness Growth Wraps Up $8M Acquisition Of Maryland Dispensary

Science-concentrated cannabis company Goodness Growth Holdings, Inc. GDNS GDNSF announced on Monday that its subsidiary, Vireo of Charm City, LLC, has wrapped up the previously-disclosed purchase of all substantial assets of Charm City Medicus, LLC, a medical cannabis dispensary in Baltimore, Maryland.

Under the deal, which was finalized upon obtaining the Maryland Medical Cannabis Commission's final approval of the medical cannabis dispensary license transfer, the dispensary will be rebranded to Green Goods Baltimore.

The transaction bolsters the company's retail footprint in the Old Line State. Currently, Goodness Growth operates 18 dispensaries nationwide.

"With our recent new brand launches and initiatives to expand cultivation and processing capacity in Maryland, we're in an excellent position to continue growing our wholesale and retail sales in the state as our manufacturing capabilities enable us to offer the full spectrum of cannabis products to patients," said Kyle Kingsley, M.D., chairman and CEO of the Minneapolis-based company.

Goodness Growth Divests Of Arizona Dispensary License

Separately, Goodness Growth announced that its subsidiary, Vireo Health of Arizona, LLC, has successfully completed the previously disclosed divestiture of its dispensary license, all remaining inventory and equipment at its Phoenix dispensary, the property lease and all revenue-producing contracts in an all-cash transaction valued at $15 million.

In addition, the deal includes related cultivation licenses for both medical and adult-use cannabis, only one of which is currently operational at the company's 18-acre outdoor farm-based in Amado, Arizona, south of Tucson.

The company simultaneously entered into a separate cultivation management services agreement with the acquirer, Copperstate Farms, LLC, thus being able to continue cultivating and selling cannabis products through the medical and adult-use wholesale sales channels in the Grand Canyon State.

The deal has an initial term of five years and will be subject to renewal for up to 20 years.

The company initially acquired Arizona operations in 2019, Kingsley explained.

Since then, the Goodness Growth "developed and greatly expanded our cultivation facility in Arizona to become one of the lowest-cost outdoor cultivation facilities in the market, and we're pleased to continue operating that facility and servicing the Arizona wholesale market through our management services agreement," Kingsley further explained.

More recent news from Goodness Growth:

• Goodness Growth Reports Net Loss Of $6.3M, Revises Revenue Guidance To $100M-$120M For Fiscal Year
• Goodness Growth's Whole Flower Products Now Available In Several New York Cannabis Dispensaries
• Cannabis REIT IIP To Fund $56.2M Goodness Growth Development In New York

GDNSF Price Action

Goodness Growth's shares traded 0.71% lower at $1.39 per share at the time of writing Monday morning.

Photo: Courtesy of Goodness Growth Holdings, Inc.