Vireo Health, a medical marijuana venture, and the parent company of Minnesota based Medical Solutions, is looking for equity financing in the sum of $31.5 million given its plans to expand into more states.
As its CEO, Dr. Kyle Kingsley has stated, they have already obtained $6 million of that amount. In speaking of the company’s progress in this regard, he said, “Things are going very well. We have a national plan and we’re doing meetings in cities throughout the country. We have hundreds of people in the pipeline right now.”
While Vireo only has about 50 employees at this point, they intend to expand almost ten times in number in the years ahead. However, they are targeting personal investors instead of institutional funds much like they did with the company’s original launch in Minnesota and New York.
It was only in November that Vireo announced that it will begin developing cannabis-based drugs that will be reviewed by the US Food and Drug Administration. Kingsley goes on to mention that capital from that business will be used to fund research in the area of cannabis-based drugs too.
The medical marijuana industry has started slowly in Minnesota, but with the state now approving of intractable pain as a condition that requires cannabis treatment, business is definitely about to pick up.
In explaining why Vireo launched in these two states, Kingsley said, “Minnesota and New York are among the more lucrative medical marijuana markets in the U.S. because regulations tightly limit the number of growers that can participate.”
That said, Minnesota has only two state-approved growers that have established an oligopoly. These firms are MinnMed, and its Minnesota competitor, LeafLine Labs. It must be pointed out that both firms have been able to obtain funding quite easily – MinnMed obtained $16.6 million, while Leafline Labs has raised over $14 million.
As for Vireo’s plans to expand, the next states that they have in mind are Pennsylvania, Georgia and Maryland and then states with large populations such as Florida and Texas too.