Vireo Growth posts significant gains with $668,000 loss in second quarter

Minnesota-based Vireo Growth Inc. (CSE: VREO) (OTCQX: VREOF) reported a net loss of $668,411 for the second quarter this year, which ended June 30, a significant improvement from the first quarter’s loss of $6.7 million.

Vireo, which rebranded from its former moniker Goodness Growth Holdings at the start of July and changed its ticker symbol, pulled in $25.1 million in revenue during the quarter, up 24.3% year-over-year from $20.3 million, but it wasn’t enough to move the company into the black. Revenue for the first six months was $49.2 million, with a net loss of $7.4 million. That compares with revenue of $39.3 million and a loss of $15.7 for the same period in 2023.

Vireo’s home base footprint in Minnesota has the company primed to take full advantage of the recreational marijuana market that’s expected to launch in the state next year. Sales in Maryland – which launched recreational sales a year ago – skyrocketed by 182%. Wholesale sales for the company were up 79%.

“Our second quarter results reflect continued solid performance across our core markets,” CEO Josh Rosen said in a press release. “We were pleased to recently activate recreational wholesale sales in New York after receiving our (Registered Organization Non-Dispensing) license in July and are continuing to work through our ongoing divestiture process.”

Rosen added that Vireo successfully negotiated a 30-month extension to its credit agreement with Chicago Atlantic, to which Vireo owes $10.5 million. He also took a swing at Chicago-based Verano Holdings Corp. over the two companies’ failed merger, which now has the pair duking it out in court.

“We still have significant room for improvement on credit metrics as we continue navigating through the challenging circumstances caused by what we believe was the wrongful termination of our merger agreement with Verano,” Rosen said.

Amber Shimpa, the CEO of subsidiary Vireo Health of Minnesota, added in the release that the company is diving head-first into the national hemp sector, while the company’s exit from New York won’t keep it from selling in the Empire State’s wholesale marijuana market.

“We also recently activated the wholesale sales channel in New York’s recreational use market with vape and edible products and look forward to launching sales of flower products near the end of the third quarter,” Shimpa said.

As of June 30, Vireo had $194.6 million in total assets, including $11.2 million in cash, against $217.2 million in total liabilities.