Verano Holdings Corp. (CSE:VRNOF) Chief Executive Officer George Peter Archos recently reported a sale of Class A Subordinate Voting Shares valued at approximately $12,095. The transaction, dated December 3, involved the sale of 8,751 shares at a weighted average price of $1.3822 per share. This sale was conducted to cover tax withholding obligations related to the settlement of previously granted Restricted Stock Units (RSUs). The transaction comes amid challenging market conditions for Verano, with shares down 66% over the past six months and currently trading at $1.36, near its 52-week low of $1.33.
In a separate transaction on December 2, Archos acquired 35,213 shares following the vesting of RSUs, which were settled into Class A Subordinate Voting Shares. This acquisition did not involve any cash transaction as it was part of the company's stock and incentive plan. According to InvestingPro data, despite recent market challenges, analysts maintain a Strong Buy consensus on Verano, which currently appears undervalued based on InvestingPro's Fair Value analysis.
Following these transactions, Archos holds 14,403,169 shares directly, while additional shares are indirectly held through various entities, including Copperstone Trust and Archos Capital Group, LLC. The company, with a market capitalization of $488 million, maintains a GOOD overall financial health score according to InvestingPro's comprehensive analysis, which includes over 30 key financial metrics and additional insights available to subscribers.
In other recent news, Verano Holdings Corp. reported a decrease in revenue to $217 million and a net loss of $43 million in its Third Quarter 2024 Earnings Conference Call. The company is emphasizing operational efficiencies and cost management, expecting to save over $80 million annually from a potential future reclassification of cannabis to Schedule III. The company also expressed cautious optimism about the evolving political landscape for cannabis, focusing on states' rights.
Verano Holdings is cautious about expansion, particularly in the competitive Florida medical market, and is monitoring consumer behavior amid economic pressures. Despite facing challenges from competition in Illinois and New Jersey, as well as adverse weather impacts from Hurricanes Helene and Milton, the company is making ongoing investments in Florida, including a new cultivation facility in Ocala.
These are recent developments for Verano Holdings, which is prioritizing growth initiatives and evaluating capital allocation options, including potential buybacks. The company anticipates federal cannabis rescheduling to alleviate tax burdens and is optimistic about legislative changes at the federal level. Management plans to focus on cost efficiencies and minor capital expenditures in 2025, aiming for stabilization and profitability.
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