Minnesota Cannabis Company Goodness Growth to be Acquired for $413M
Minnesota’s first medical cannabis company is getting acquired by a Chicago firm.
Founded in 2014, Goodness Growth was Minnesota’s first medical cannabis company and one of only two licensed cannabis cultivators in the state. LeafLine Industries, its only Minnesota-based competitor, was also recently sold to Chicago-based cannabis giant Green Thumb Industries.
In a statement, Goodness Growth CEO Dr. Kyle Kingsley spoke glowingly about the acquisition, which still requires approvals from regulators in the U.S. and Canada. He noted that the acquisition will create “one of the largest cannabis companies in the country.”
“I am confident that the acquisition by Verano will benefit all Goodness Growth stakeholders – our patients, staff, community partners, and shareholders,” Kingsley said.
In terms of revenue, both Verano and Green Thumb are already some of the biggest cannabis operators in North America.
Verano is based in Chicago, but it’s publicly traded in Canada because cannabis is still illegal at the federal level in the U.S. For its part, Goodness Growth’s footprint already extends well beyond Minnesota; the company has opened dispensaries in New York, New Mexico, Arizona, and Maryland.
As in several other industries, consolidation is the name of the game in the U.S. cannabis industry. As more states legalize the plant for medical and recreational use, cannabis companies are transforming into multi-state operators to capitalize on newly emerging markets. “The businesses succeeding in this industry have a multi-state presence,” a Minnesota cannabis attorney told TCB last month.
Between its Otsego cultivation facility and eight dispensaries, Goodness Growth employs more than 100 in Minnesota alone. Goodness Growth was formerly known as Vireo Health.
Compared to other states, Minnesota’s cannabis program is rather small. But industry insiders expect that to change in the near future. The state has already authorized the sale of smokable forms of the plant — a move that both cannabis operators said would cut down costs of the program and bring in more customers. Gov. Tim Walz, meanwhile, has renewed his push for recreational legalization. He’s even asked state legislators to set aside $25.2 million to establish a cannabis management office.