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Vireo Health Trades Down On Q3 Results, CEO Sees 'Clear Path To Profitability'

November 27, 2019 2:25 pm
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Vireo Health Trades Down On Q3 Results, CEO Sees 'Clear Path To Profitability'

Cannabis company Vireo Health International, Inc. (CSE:VREO) (OTC:VREOF) reported third-quarter financial results Wednesday, posting revenue of $8 million, up 62% year-over-year.  

Vireo posted a quarterly net loss of $14.6 million versus net income of $14,890 in the corresponding period of the prior year. The adjusted net loss for the quarter was $4.9 million, up from a loss of $2 million year-over-year.

Vireo disclosed adjusted EBITDA loss of $5.9 million for the quarter, compared to adjusted EBITDA income of $182,082 in the comparable quarter of 2018.

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"We continued gaining sales momentum in our Maryland and Pennsylvania markets during the third quarter, and we also began seeing the benefits of capacity upgrades in our recently acquired Arizona business," founder and CEO Kyle Kingsley, M.D. said in a statement.

"Near-term profitability has been impacted by the under absorption of overhead costs in early stage markets where revenues are just beginning, but we're anticipating performance improvement in the coming quarters, especially given the positive demand trends and patient enrollment growth we're experiencing across most of our operating footprint."

In November, Vireo announced it has appointed Bruce Linton, the founder and former CEO of Canopy Growth Corporation (NYSE:CGC), as executive chairman, and Shaun Nugent as CFO.

“With virtually no debt, we control our own destiny and our lean operations and disciplined approach to capital allocation provide us a clear path to profitability,” Kingsley said. 

Vireo shares were down 5.47% at $1.21 at the time of publication Wednesday. 

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