Cannabis grower Vireo Health is moving ahead with a 324,000-square-foot expansion of its processing plant in the Tryon Technology Park in Fulton County after Verano Holdings Corp. abandoned plans to purchase Vireo's parent company in an all-stock deal worth an estimated $413 million.
Kyle Kingsley, founder and chief executive of Vireo's parent company Goodness Growth Holdings, confirmed on Tuesday, the 15th of November, that the company has received regulatory approval from New York state to operate 170,000 square feet, a little more than half of the current expansion.
The company already operates a 41,600-square-foot medical marijuana growing facility in the tech park, Kingsley said.
"We are taking a measured approach here. We are trying to gauge demand," Kingsley said Tuesday during the company's third-quarter earnings call. "Obviously, the big uncertainty in New York is the go-live date for adult use. Once we get more clarity there, we will be able to say more."
Vireo became one of the first five licensed medical cannabis producers in New York in 2015. Now, the company is increasing production capacity at the Perth technology park as it waits for the state to roll out regulations for recreational marijuana production.
There had been some concern about whether the Tryon expansion would move forward after Goodness Growth's proposed share-sale agreement with Verano fell apart.
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