Aaron Gray's questions to Verano Holdings (VRNOF) leadership • Q3 2022
Question
Aaron Gray of Alliance Global Partners asked about the competitive dynamics in Florida, questioning why Verano's market share remained flat despite significant store openings and inquiring about the company's pricing strategy. He also sought details on the revised, lower CapEx plan, asking which markets were deprioritized and if this included the now-terminated Goodness Growth acquisition plans.
Answer
CEO & Founder George Archos acknowledged market softness in Florida, attributing it to hurricane impacts and broader economic pressures. He explained that Verano is introducing value-tier brands like Savvy to attract new customers without altering the pricing of its popular premium brands. Regarding CapEx, Archos confirmed the reduction is due to pausing projects in Pennsylvania and Florida and eliminating spending for New York and Minnesota following the terminated acquisition, which preserves cash.