CHICAGO—Brett Andrew Summerer, Chief Financial Officer of Verano Holdings Corp. (OTC:VRNOF), recently executed a series of stock transactions involving the company's Class A Subordinate Voting Shares. According to the latest SEC filing, Summerer sold a total of 9,724 shares over two days, generating approximately $13,324. The transaction comes as the company's stock, currently trading near its 52-week low of $1.36, has declined about 65% over the past six months, according to InvestingPro data.
On December 3, Summerer sold 4,477 shares at an average price of $1.3822 per share, yielding about $6,188. The following day, he sold an additional 5,247 shares at a price of $1.3601 per share, totaling $7,136. These sales were conducted under a Rule 10b5-1 trading plan and to cover tax obligations from previously vested restricted stock units. With a market capitalization of approximately $488 million and an EBITDA of $242 million for the last twelve months, InvestingPro analysis suggests the stock is currently undervalued.
Summerer's transactions were part of a structured plan and do not indicate discretionary sales, according to the filing. After these transactions, he retains direct ownership of 90,848 shares in the company. For deeper insights into insider trading patterns and comprehensive financial analysis, including 10+ additional ProTips and detailed valuation metrics, investors can access the full Pro Research Report available on InvestingPro.
In other recent news, Verano Holdings Corp. reported its financial performance for the third quarter of 2024, noting a decrease in revenue to $217 million and a net loss of $43 million. The company's Gross profit stood at $109 million, representing 50% of revenue, while adjusted EBITDA was $64 million, 30% of revenue. Amid challenging market conditions and legislative changes, the company emphasized its strategic focus on operational efficiencies and cost management, with an expectation to save over $80 million annually from a future Schedule III cannabis reclassification.
Verano Holdings has expressed cautious optimism about the evolving political landscape for cannabis, particularly with regard to states' rights. The company is also cautiously monitoring expansion, especially in the competitive Florida medical market, and consumer behavior amid economic pressures. In Ohio, regulatory delays have affected the launch of adult-use sales, but improvements are expected by 2025.
The company is prioritizing growth initiatives and evaluating capital allocation options, including potential buybacks. Looking forward, 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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