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Goodness Growth Holdings Inc. (CSE: GDNS)(OTCQX: GDNSF) reported financial results for its fourth quarter and full year ended Dec. 31, 2023. Revenue jumped 26% in the fourth quarter to $24.2 million over last year’s $19 million.

Net loss for the quarter also improved to $4.5 million from last year’s net loss of $13.2 million.

Full-year results

Goodness Growth reported a revenue increase of 18.1% to $88.1 million in 2023 from last year’s revenue of $74.6 million. Net loss for the year was trimmed to $25.5 million from 2022’s net loss of $42 million.

As of Dec. 31, 2023, the company had cash on hand of $16 million.

“2023 was a transformational year for our company, and our teams did an excellent job executing our CREAM & Fire strategy to deliver significant improvements in operating and financial performance,” said interim Chief Executive Officer Josh Rosen. “We delivered continual improvement in revenue, gross margin, and operating profit throughout the course of 2023.

“We’re entering 2024 in a much stronger position because of these improvements, and our team is poised to capitalize on what I believe is an attractive platform for growth,” Rosen continued. “As I have stated in the past, de-risking our balance sheet was another critical focus for us over the past year, and our announcement this afternoon to divest our New York assets helps position us for an exciting year in 2024.”

Selling New York Vireo

In addition to the earnings, Goodness Growth announced it entered into an agreement to sell its subsidiary, Vireo Health of New York, to ACE Venture Enterprises Inc.

Goodness Growth said in a statement that the purchase price was between $3 million and $5 million for the licenses, inventory, and assets. Ace will also provide an investment of $20 million for the development of the Johnstown, New York, cannabis cultivation and manufacturing campus, and assume the Johnstown lease agreement with Innovative Industrial Properties (NYSE: IIPR).

The two companies also agreed that Goodness Growth’s management will remain in place to oversee the company in return for an approximate 15% share of net profits.

Other markets

Goodness Growth’s largest market, Minnesota, had revenue increase 5% to $11 million, while New York fell by 16% to $2 million. Maryland’s revenue popped by 210% to $6.5 million.

“Our operational key performance indicators continued to show strong improvements both during the fourth quarter and over the past 12 months,” Amber Shimpa, president and CEO of Vireo Health of Minnesota, said. “We remain especially pleased with the progress we’ve made with our focus on decentralized operations during the year, allowing our local teams and support from partners like Grown Rogue to help drive decision-making for improved product quality and fundamental performance.”

Shimpa also advised that Goodness Growth will provide updates on its plans to participate in Minnesota’s upcoming adult-use market “in the coming quarters.”

The post Goodness Growth delivers increased revenue, agrees to sell Vireo Health of New York appeared first on Green Market Report.

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Debra Borchardt, KahliBuds, 420GrowLife