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Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), a leading multi-state cannabis company and constituent in the munKNEE Pure-play MSO Pot Stock Index, announced its financial results today for the first quarter ended March 31, 2022. All financial information is provided in U.S. dollars unless otherwise indicated and compared with the previous quarter.
 

Q1 Financial Highlights

• Revenue: declined 4% to $202.2M
• Gross Profit: declined 13% to $99.7M
• Gross Margin: increased to 61% from 60%
• SG&A: increased 43% to $80M
• Net Loss: $(7)M; previous quarter information not made available
• Adj. EBITDA: decreased 3.6% to $81M 
  • as a % of Revenue: remained unchanged at 40%
     

Q1 Operational Highlights

• Entered into an arrangement agreement to acquire Goodness Growth Holdings, Inc..
• Withdrew $100M under the Company’s senior secured credit agreement, with an added option to request funding of up to $175M.
• Opened two dispensaries in Florida and its first dispensary in West Virginia.
   

Management Commentary

George Archos, Verano Founder, and Chief Executive Officer said:

• “Overall, we are pleased by our progress in strategically positioning Verano to capitalize on anticipated growth in the second half of the year and beyond.”
   

Stock Performance

While Verano's stock price is up slightly from yesterday it is DOWN 26.8% from the end of Q1 (March 31st) and is now DOWN 42.1% YTD and DOWN 71.3% from its peak in February 2021.