Goodness Growth Holdings announced that its subsidiary, Vireo Health of Arizona, has reached a definitive agreement with Copperstate Farms to sell its dispensary license for Green Goods (formerly Arizona Natural Remedies) in Phoenix, Arizona and the property lease and all revenue producing contracts in an all-cash transaction valued at $15 million. The company expects the transaction to close later this year, pending regulatory approval.
“For the past several months there has been significant interest on behalf of larger vertically-integrated operators to acquire our Phoenix dispensary,” said Chairman & Chief Executive Officer, Kyle Kingsley, M.D. “Given our presence as a predominantly wholesale supplier of biomass in the Arizona market, our management team and board of directors felt that this transaction simplified our business during a period in which we’re prioritizing resources toward the attractive opportunities we see in our other markets, especially New York and Minnesota.”
The transaction also includes related marijuana cultivation licenses for both medical and adult-use, only one of which is currently operational at the Company’s 18-acre outdoor farm in Amado, AZ, south of Tucson.
Goodness Growth and has entered into a separate cultivation management services agreement with the acquirer which will allow the company to continue cultivating and selling cannabis products through the medical and adult-use wholesale sales channels in Arizona. The cultivation management services agreement has an initial term of five years and will be subject to renewal for up to 20 years.
Kingsley concluded, “We originally acquired our Arizona operations in 2019, along with several other cultivation sites in the Southwestern United States, because we were attracted to strategic geographic locations with climates that were suitable for outdoor cultivation. We’ve since developed what we believe is one of the lowest-cost outdoor cultivation facilities in Amado, and we’re pleased to continue operating that facility and servicing the wholesale market in Arizona through our management services agreement.”
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