– Company will maintain focus on Arizona wholesale channel as a low-cost producer of biomass –
Goodness Growth Holdings, Inc. (“Goodness Growth”) (CSE: GDNS; OTCQX: GDNSF), a physician-led, science-focused cannabis company and IP developer, today announced that its subsidiary, Vireo Health of Arizona, LLC (“Company”), has successfully completed the previously-disclosed divestiture of its dispensary license, all remaining inventory and equipment at its Phoenix dispensary, the Phoenix dispensary property lease and all revenue producing contracts in an all-cash transaction valued at $15.0 million.
The transaction also includes related cultivation licenses for both medical and adult-use, only one of which is currently operational at the Company’s 18-acre outdoor farm in Amado, AZ, south of Tucson. Goodness Growth also entered into a separate cultivation management services agreement with the acquirer, Copperstate Farms, LLC, which will allow the Company to continue cultivating and selling cannabis products through the medical and adult-use wholesale sales channels in Arizona. The cultivation management services agreement has an initial term of five years and will be subject to renewal for up to 20 years.
“We received significant interest to acquire our Phoenix dispensary and are pleased to have closed a transaction which will allow us to concentrate on growing profitability as a wholesale supplier of biomass in the Arizona market,” said Chairman & Chief Executive Officer, Kyle Kingsley, M.D. “Our management team and board of directors felt that this transaction will allow us to focus additional resources on the more attractive opportunities we see in our other markets, especially New York, Maryland, and Minnesota.”
Kingsley concluded, “We originally acquired our Arizona operations in 2019, along with several other cultivation sites in the Southwestern United States, because we were attracted to strategic geographic locations with climates that were suitable for outdoor cultivation. We’ve since 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.”
