Cannabis company Vireo Health International Inc. recently announced the completion of a major expansion in New Mexico. Its announcement comes on the heels of the legalization of recreational cannabis use in the state.
The expansion includes a cultivation site near Gallup on behalf of Vireo’s local affiliate, Red Barn Growers. The expansion creates an additional 12,600 square feet of cultivation space.The growth will enable the company to cultivate the maximum number of plants allowed by the state, according to a news release from Vireo.
Vireo previously acquired the management entity that oversaw the operations of New Mexico-based Red Barn Growers for $4 million, Business First reported. Red Barn is the 23rd largest medical cannabis company in the state by 2020 total gross receipts, according to our research. Red Barn reported $2.41 million in gross receipts last year.
“The strategic investments in our cultivation and retail operations in New Mexico will create additional opportunities to drive profitable growth in a market that is benefiting from the tailwinds of favorable regulatory changes,” said Vireo Health Chairman and CEO Kyle Kingsley in a statement. “These expansion projects will create new jobs in our operating communities and allow Vireo to meet increasing demand for cannabis products in the state of New Mexico generated by the recent passage of adult-use legislation."
Two retail locations in Albuquerque and Las Cruces are also set to open, pending regulatory approval. The Albuquerque dispensary is in a 1,995-square-foot space, and the Las Cruces location will be in a 2,490 square foot space, according to the release. The new dispensaries are expected to create another 30 jobs.
Vireo (OTCQX:VREOF) is a physician-led company based in Minneapolis that manufactures cannabis products. It had 376 full-time employees as of March 15, according to a recent Securities and Exchange Commission filing, and total revenue last year of $49.2 million. The company, along with many others, are likely to see increased opportunity in New Mexico's cannabis market within the next year when recreational sales begin.
Gov. Michelle Lujan Grisham signed the New Mexico legalization bill, which permits the launch of commercial sales of recreational cannabis by April 2022, this month.
