Vireo has reached a definitive agreement with Ayr Strategies to sell all of the assets and liabilities of its affiliated company, Ohio Medical Solutions, for total consideration of $4.85 million.
"This transaction allows Vireo to monetize a license acquired at minimal cost through a merit-based award process, and reallocate the proceeds to our core markets, where we see significant opportunities to improve revenue growth and future cash flow generation," said Founder & Chief Executive Officer, Kyle Kingsley, M.D.
"We're especially pleased to achieve yet another milestone for our shareholders without the dilutive impacts of other forms of financing. We're continuing to scale our operations in high-value markets like Arizona, New York, New Mexico, Maryland and Minnesota, and expect to generate stronger performance across each of these markets in fiscal year 2021."
Ohio Medical Solutions holds a permit for the processing of medical cannabis in the state of Ohio. This permit was initially awarded to OMS through a merit-based application process in 2019. Based in Akron, OMS manufactures cannabis-based products in a 11,300 square foot processing facility. The transaction's total consideration of $4.85 million includes $1.15 million in cash and $3.7 million in the form of Right of Use liabilities associated with lease obligations. The transaction is subject to regulatory approvals and other conditions.
For more information:
www.vireohealth.com
www.ayrstrategies.com