In recent transactions disclosed by Verano Holdings Corp. (OTC:VRNOF), Destiny Lynn Thompson, the company's Chief People Officer, reported selling 2,822 shares of Class A Subordinate Voting Shares. The sale, conducted on December 3, 2024, was executed at a weighted average price of $1.3822 per share, resulting in a total transaction value of approximately $3,900. The transaction comes as the stock trades near its 52-week low of $1.36, having declined about 69% year-to-date, according to InvestingPro data.
This sale was part of a pre-arranged sell-to-cover transaction to satisfy tax withholding obligations related to the vesting of restricted stock units. The transaction does not represent a discretionary sale by Thompson. Following the sale, Thompson retains direct ownership of 97,461 shares in the company. InvestingPro analysis indicates the stock is currently undervalued, with several additional insights available in the comprehensive Pro Research Report, which offers deep-dive analysis of this $488M market cap company.
Additionally, on December 2, 2024, Thompson acquired 9,435 shares through the vesting of restricted stock units, which were settled into Class A Subordinate Voting Shares. This acquisition was executed at no cost, as part of the company's Stock and Incentive Plan. Despite recent price weakness, InvestingPro's Financial Health score remains GOOD at 2.54.
In other recent news, Verano Holdings Corp. reported a decrease in revenue to $217 million and a net loss of $43 million for the third quarter of 2024. Despite facing market challenges, the company maintains a focus on operational efficiency and cost management. The potential reclassification of cannabis to Schedule III was noted as a significant future benefit for tax savings, with the company expecting to save over $80 million annually. Verano Holdings also expressed a cautious approach to expansion, particularly in the competitive Florida medical market.
Analysts from the earnings call noted the company's gross profit stood at $109 million, representing 50% of revenue, while adjusted EBITDA was $64 million, 30% of revenue. The firm's management plans to focus on cost efficiencies and minor capital expenditures in 2025, aiming for stabilization and profitability. The company is also evaluating capital allocation options, including potential buybacks.
These are among the recent developments for Verano Holdings, as the company navigates market pressures and legislative changes. The company remains optimistic about the evolving political landscape for cannabis and anticipates federal cannabis rescheduling to alleviate tax burdens. However, the company also faced challenges from competition and adverse weather impacts, which affected its financial performance.
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