MaryMed, LLC., a Maryland subsidiary of Minneapolis-based Vireo Health International, Inc. will transfer its marijuana growing license in the state from Dorchester to Kent County under a $1.3 million deal to purchase Goose Landing Farms, Inc., in Massey.
The 110,200 sq. ft greenhouse facility in Massey currently grows perennials.
MaryMed will continue to operate its 22,000 sq. ft. manufacturing and processing facility in Hurlock, MD.
Kent County Commissioner Ron Fithian said Vireo’s announcement is good news for Kent County, which has yet to become a place for the fledgling cannabis industry to flourish in Maryland.
“We welcome that Viero’s sees an opportunity to set up operations in Kent,” Fithian said. “Kent County has yet to have the opportunity to participate in this growing industry and we welcome Vireo and the opportunity for them to provide jobs to our local residents.”
Vireo said the transfer of MaryMed’s growing operation to Kent will increase production capacity 12 fold and put the company in a stronger position once its dispensary license is approved by the Maryland Cannabis Commission.
“This acquisition significantly increases our revenue growth potential in Maryland’s attractive medical cannabis market at a relatively low cost,” said Kyle Kingsley, M.D., Founder & Chief Executive Officer of Vireo said in a press release. “It will enable us to drive stronger profitability within this market once our retail dispensary license becomes operational.”
“This transaction is consistent with our objective of increasing scale in our core markets to improve margins and cash flow generation, and we’re looking forward to seeing the benefits of this acquisition on revenue growth and profitability beginning in the fourth quarter of this year,” he said.
The transaction is subject to approval from the Maryland Cannabis Commission.
The announcement comes after a previous offer by Timonium-based Curio Wellness was rejected by Goose Landing Farms.
(Feature Image Photo: Brett Levin/Flickr)