Debra Borchardt
Former 4Front Ventures CEO and Chairman Josh Rosen is taking on the role of interim President at Goodness Growth Holdings, Inc. (CSE: GDNS)(OTCQX: GDNSF). Rosen has been serving as a director of the company since August 2021 and brings to the company his capital market experience. Rosen also serves as Managing Partner at Bengal Capital and has private equity experience managing the investment portfolio for a large family office and worked extensively in the public markets as an equity analyst, primarily at the global investment bank, Credit Suisse.
“Josh has become an invaluable strategic advisor to our board since he joined last year, and we’re pleased to expand his responsibilities given his proven cannabis industry and capital markets expertise,” said Chairman and CEO Kyle Kingsley, MD. “Josh is uniquely positioned to help optimize our operations in adult-use markets, and his track record in the capital markets and insights on executing strategic transactions remain extremely beneficial to our team.”
Rosen’s new responsibilities will focus on driving operational efficiencies and adult-use preparedness in the company’s various operating markets to better align resources to capitalize on the growing adoption of adult-use regulations and manage the company’s key capital and strategic relationships. Kingsley will continue in his role as CEO with primary responsibilities focused on collaborating with Rosen on strategy, government relations, and the company’s ongoing commitment to effective medical cannabis products.
“I am looking forward to helping the company capitalize on its compelling platform of emerging adult-use markets and drive successful outcomes for shareholders,” said Rosen. “I’ve known and admired Kyle’s tireless efforts and enthusiasm for the intersection of cannabis and wellness for several years and as a long-term investor in the Company, I see significant potential for value creation at what’s become an important crossroads for the Company with the recent disappointing termination of the planned merger with Verano.”
Strategic Alternatives
In November, Goodness Growth announced its earnings results and reiterated that its Transaction Committee continues to evaluate strategic alternatives for the company. This could include a disposition of a material business or assets of the company or a merger or sale of the company. The company said at the time that it had not set a timetable for the completion of this review process.
As of September 30, 2022, the company had cash on hand of $21.8 million, which included net proceeds received from an increase on its delayed draw loan of $8.5 million during the third quarter. Total current liabilities were $26.3 million. Goodness Growth believes that Verano owes it $14 million for a termination fee due to the canceled transaction. While t is suing for the fee, there is no guarantee of the outcome or when it will be resolved.
Goodness Growth has also not updated investors on its plans for New York other than to say it continues to expand. The medical market in New York remains a verticle operation, but the adult-use market breaks up that model making companies choose only one aspect such as retail or cultivation. The first licenses were only awarded to social equity applicants forcing the existing medical license holders to wait until a later date to get approved.
