Vireo Health International Inc. (OTCMKTS:VREOF) and Ayr Strategies Inc. (OTCMKTS:AYRSF) have reached a definitive agreement for the sale of all assets and liabilities of Ohio Medical Solutions, LLC, its affiliate company, for $4.85 million. The company has also announced the resignation of Ari Hoffnung from the Board of Directors and as Chief Strategy Officer.
Vireo to sell Ohio Medical Solutions assets
Kyle Kingsley, Vireo Health founder, and CEO said that the assets’ sale would allow the company to monetize acquired licenses at reduced costs via a merit-based award process. The company plans to invest proceeds from the sale in its core markets where there are huge potential and opportunities to generate revenue and cash flow. Kingsley said that they are delighted to achieve another milestone for stockholders without dilutive impacts of other financing forms. He confirmed that the company continues to scale its operations in high-value markets such as New York, Maryland, Minnesota, and New York and expects to generate solid performance in the markets in 2021.
It is important to note that Ohio Medical Solutions holds a medical cannabis processing license in the State of Ohio. Ohio Medical solutions received the license in 2019 through a merit-based application process. The Akron-based company manufactures cannabis-based products at its 11,300 sq. ft. processing facility. The transaction will cost $4.85 million, which comprises $3.7 million in Right of Use liabilities related to leasing obligations and $1.15 million in cash. Closing of the transaction is subject to regulatory approval and closing conditions.
Ari Hoffnung leaves Vireo Health
Regarding the resignation of Ari Hoffnung, Kingsley indicated that the company was grateful for the five years that Ari has spent in the company with extraordinary contributions to the Board. Kingsley said that Aris’s leadership has been instrumental to the company’s success as one of the multi-state operators in the US. Ari’s contribution to Vireo in a fast-changing legislative and business landscape has been vital to the company’s success. Kingsley acknowledged his efforts and said he wishes him the best.