Goodness Growth to Sell Phoenix Dispensary to Copperstate Farms for $15 Million – New Cannabis Ventures

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Goodness Growth to Sell Phoenix Dispensary to Copperstate Farms for  Million – New Cannabis Ventures
Goodness Growth to Sell Phoenix Dispensary to Copperstate Farms for  Million – New Cannabis Ventures

Goodness Growth Holdings announces proposed divestment of license to pharmacy in Arizona

The company will continue to focus on the wholesale channel as a low cost producer of biomass

MINNEAPOLIS, Nov. 2, 2021 / PRNewswire / – Goodness Growth Holdings, Inc. (“Goodness Growth”) (CSE: GDNS; OTCQX: GDNSF), a medical-owned, science-based cannabis company and IP developer, today announced that its subsidiary Vireo Health of Arizona, LLC (“Company”) has a definitive agreement with Copperstate Farms, LLC (“Copperstate”) to sell its pharmacy license, all remaining inventory and equipment at its Phoenix pharmacy, Phoenix Pharmacy, hit real estate leasing and all revenue generating contracts in a cash-only transaction valued at $ 15.0 million. The company expects the transaction to close later this year, subject to regulatory approval.

“Over the past few months there has been a great deal of interest from major vertically integrated operators to acquire our Phoenix Pharmacy,” said Chairman and Chief Executive Officer Kyle Kingsley, MD. “Given our presence as a predominantly wholesale biomass supplier in the Arizona market, our management team and board of directors felt that this transaction simplified our business at a time when we are focusing resources on the attractive opportunities we have in our others Markets, especially in New York and Minnesota. “

The transaction also includes appropriate cultivation licenses for both medicinal and adult cultivars, only one of which is currently in operation on the Company’s 18-acre outdoor farm in Amado, AZ, south of Tucson. Goodness Growth and has entered into a separate grow services management agreement with the acquirer that allows the company to continue to grow and sell cannabis products through the wholesale medicinal and adult channels in Arizona. The cultivation management service contract has an initial term of five years and can be extended by up to 20 years.

We originally acquired our Arizona operation in 2019 along with several other growing areas in the Southwestern United States because we were drawn to strategic geographic locations with climates suitable for outdoor growing.

Goodness Growth Chairman and Chief Executive Officer, Kyle Kingsley, MD

Since then we have developed what we believe to be the most cost effective outdoor grow facility in Amado, and we are pleased to continue operating that facility and serving the Arizona wholesale market through our management service agreement.

About Goodness Growth Holdings, Inc.

Goodness Growth Holdings, Inc. is a doctor-led, science-led holding company whose mission is to bring the power of plants to the world. The company’s business consists primarily of its subsidiary of a multi-state cannabis company, Vireo Health, and its science and intellectual property developer, Resurgent Biosciences. The company manufactures proprietary branded cannabis products in environmentally friendly facilities and state-of-the-art growing areas, and markets its products through its growing network of Green Goods ™ and other retail locations and third party pharmacies. Its teams of more than 500 employees focus on developing differentiated products, driving scientific innovation in herbal medicines, and developing meaningful intellectual property. Today the company is licensed to grow, process and / or distribute cannabis in eight markets and operates 18 pharmacies in the United States. More information about Goodness Growth Holdings can be found at www.goodnessgrowth.com.

Original press release

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Published by NCV Newswire

NCV Newswire

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