Physician-Led Vireo Health Expands into Adult-Use Cannabis State with Massachusetts Acquisition
Company to Position Cannabis as Safer Recreational Alternative to Alcohol and Tobacco
MINNEAPOLIS, April 2, 2019 /PRNewswire/ -- Vireo Health International, Inc. ("Vireo" or the "Company") (CSE: VREO), America's leading science-focused, multi-state cannabis company, today announced the acquisition of Mayflower Botanicals Inc., a Registered Marijuana Dispensary ("RMD") certificate holder in Massachusetts. In conjunction with the transaction, Vireo acquired 73 acres of land zoned for the production, processing, and distribution of medical cannabis, with an expedited path toward adult-use licensure.
"As a board-certified emergency room physician, I support adult-use programs because I believe cannabis to be a safer and less addictive alternative to both alcohol and tobacco," said Chief Executive Officer, Kyle Kingsley, M.D. "It's time to recognize that a public health policy focused on adults replacing their consumption of alcoholic beverages and tobacco products with cannabis has the potential to save thousands of lives each year."
Data from the Centers for Disease Control and Prevention indicates that the excessive alcohol use in the United States kills about 88,000 people each year. In Massachusetts, excessive drinking results in 1,525 deaths annually. According to a 2016 study, cigarette smoking is responsible for more than 480,000 deaths per year, including nearly 42,000 deaths from secondhand smoke exposure. In 2015, an estimated 700,000 adults in Massachusetts were regular cigarette smokers.
Dr. Kingsley continued, "As we expand into adult-use states such as Massachusetts, our physician-led team will provide consumers with medically- and scientifically-based products and advice designed to highlight the potential health benefits of replacing alcohol and tobacco with cannabis."
In 2008, Massachusetts became the 18th state in the United States to adopt a medical cannabis program. In 2016 the state voted to legalize recreational use, and the first recreational sales began on November 20, 2018. According to Massachusetts' Medical Use of Marijuana Program, in February 2019, there were 59,175 active qualifying patients enrolled in the state's medical cannabis program. The Massachusetts Cannabis program currently includes 49 Registered Marijuana Dispensaries with certificates to cultivate, process, and distribute cannabis.
This transaction, which was previously disclosed, was financed through a combination of cash and stock and represents Vireo Health's third acquisition since it began trading on the Canadian Securities Exchange under the ticker symbol "VREO." Vireo Health now has more than 300 employees in nine states including Arizona, Maryland, Massachusetts, Minnesota, New Mexico, New York, Ohio, Pennsylvania, and Rhode Island.
About Vireo Health International, Inc.
Vireo Health International, Inc. is America's leading science-focused, multi-state cannabis company. Vireo's physician-led team of more than 300 employees provides best-in-class cannabis products and customer experience. Vireo cultivates cannabis in environmentally-friendly greenhouses, manufactures pharmaceutical-grade cannabis extracts, and sells its products at both company-owned and third-party dispensaries. The Company currently has operations in nine states including Arizona, Maryland, Massachusetts, Minnesota, New Mexico, New York, Ohio, Pennsylvania, and Rhode Island. For more information about the company, please visit www.vireohealth.com.
Contact Information
Investor Inquiries
Sam Gibbons
Vice President, Investor Relations
[email protected]
(612) 314-8995
Media Inquiries
Albe Zakes
Vice President, Corporate Communications
[email protected]
(267) 221-4800
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Forward-Looking Statement Disclosure
This news release contains forward-looking information within the meaning of applicable securities laws, based on current expectations. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "look forward to", "budget" "scheduled", "estimates", "forecasts", "will continue", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved." Forward looking information may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, milestones, strategies and outlook of Vireo, and includes statements about, among other things, future developments, the future operations, potential market opportunities, strengths and strategy of the Company. Forward-looking information is provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements should not be read as guarantees of future performance or results. These statements are based upon certain material factors, assumptions and analyses that were applied in drawing a conclusion or making a forecast or projection, including Vireo's experience and perceptions of historical trends, current conditions and expected future developments, as well as other factors that are believed to be reasonable in the circumstances.
Examples of the assumptions underlying the forward-looking statements contained herein include, but are not limited to those related to: the achievement of goals, the closing of acquisitions, obtaining of necessary permits and governmental approvals, future market positioning, as well as expectations regarding availability of equipment, skilled labor and services needed for cannabis operations, intellectual property rights, development, operating or regulatory risks, trends and developments in the cannabis industry, business strategy and outlook, expansion and growth of business and operations, the timing and amount of capital expenditures; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; access to capital; future operating costs; government regulations, including future legislative and regulatory developments involving medical and recreational marijuana and the timing thereto; receipt of appropriate and necessary licenses in a timely manner; the effects of regulation by governmental agencies; the anticipated changes to laws regarding the recreational use of cannabis; the demand for cannabis products and corresponding forecasted increase in revenues; and the size of the medical marijuana market and the recreational marijuana market.
Although such statements are based on management's reasonable assumptions at the date such statements are made, there can be no assurance that it will be completed on the terms described above and that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. Vireo assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.
By its nature, forward-looking information is subject to risks and uncertainties, and there are a variety of material factors, many of which are beyond the control of the Company and that may cause actual outcomes to differ materially from those discussed in the forward-looking statements. These factors include, but are not limited to: denial or delayed receipt of all necessary consents and approvals; need for additional capital expenditures; increased costs and timing of operations; unexpected costs associated with environmental liabilities; requirements for additional capital; reduced future prices of cannabis; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the cannabis industry; delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities; title disputes; claims limitations on insurance coverage; risks related to the integration of acquisitions; fluctuations in the spot and forward price of certain commodities (such as diesel fuel and electricity); changes in national and local government legislation, taxation, controls, regulations and political or economic developments in the countries where the Company may carry on business in the future; liabilities inherent in cannabis operations; risks relating to medical and recreational cannabis; cultivation, extraction and distribution problems; competition for, among other things, capital, licences and skilled personnel; risks relating to the timing of legalization of recreational cannabis; changes in laws relating to the cannabis industry; and management's success in anticipating and managing the foregoing factors.
SOURCE Vireo Health International, Inc.
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