Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), a constituent in the munKNEE American Cannabis MSO Stocks Index, announced its financial results for the third quarter (Q3) ended September 30, 2022, on Tuesday, November 15th as follows:

Third Quarter 2022 Financial Highlights

(The information below compares Q3 2022 with Q2 2022 and all figures are in U.S. dollars.)

• Revenue: UP 1.8% to $227,588
• Gross Profit: UP 25.4% to $122,994
  • Gross Profit Margin: UP to 54.0% from 43.9%
• SG&A Exp.: DOWN 14.5% to $87,710
  • as a % of Revenue: DOWN to 37.7% from 44.8%
• Net Loss: UP to $(42,993) from $(9,847)
  • Net Loss/Share: UP to $(0.13) from $(0.03)
• Adj. EBITDA: UP 8.7% to  $82,124
  • as a % of Revenue: UP to 36.1% from 33.8%
• Cash on Hand: DOWN 17.7% to $76,418

Third Quarter Operational Highlights

• Furthered Florida retail expansion by opening 11 new MÜV dispensaries
• Opened new Zen Leaf dispensaries in WV, and PA
• Relocated Zen Leaf Jessup to Elkridge in Maryland
• Commenced adult use sales at Zen Leaf Neptune in NJ
• Launched Verano signature flower branded products in Arizona, Florida, Massachusetts and Pennsylvania which are now distributed to more than 500 dispensaries across nine states, including more than 100 of the Company’s retail locations
• Introduced Savvy, a new value-oriented flower and extract brand across seven core markets
• Inked licensing agreement with Mike Tyson's Tyson 2.0 cannabis company to launch legendary wrestler Ric Flair's new cannabis line across 11 markets
• Welcomed Lawrence Hirsh as a new member of the Board of Directors and Chair of the Audit Committee
• Completed acquisition of Sierra Well, bolstering Nevada footprint with addition of two operating dispensaries and an active cultivation facility.
• Initiated second annual Breast Cancer Awareness Month donation effort benefiting the Lynn Sage Breast Cancer Foundation.

Management Commentary

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

• “...We delivered Revenue growth and strong Adjusted EBITDA margins in the face of economic headwinds, industry dynamics and legislative uncertainty, underscoring our focus on superior operations and efficiency.
• We bolstered our growing product portfolio by:
  • scaling our signature Verano brand across core markets,
  • introducing our value flower and extract brand Savvy,
  • launching the Ric Flair Drip Cannabis line in partnership with Tyson 2.0, and
  • releasing a low-dose, high-function edibles line, BITS.
• ...We refinanced our $350 million credit facility, which gives us flexibility in our capital structure and the ability to reduce our cost of capital...”

Stock Performance

Verano's stock price:

• declined 18% during Q3 (July, August, and September),
• advanced 12% during October,
• advanced 10% leading up to the release of the Q3 financials after the markets closed on November 15th but
• declined 9% as of the close of business today and is now
• down 55% YTD.

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