Edward Aloysious McDermott III, the Chief Operating Officer of Verano Holdings Corp. (OTC:VRNOF), has recently executed several transactions involving the company's Class A Subordinate Voting Shares. According to a Form 4 filing with the Securities and Exchange Commission, McDermott sold a total of 3,075 shares over two days, generating proceeds of approximately $4,224. The transactions come as the company's stock, currently valued at a market cap of $488 million, has experienced a significant decline of 66% over the past six months.
On December 3, McDermott sold 1,919 shares at a weighted average price of $1.3822 per share, equating to a total of $2,652. The following day, he sold an additional 1,156 shares at a price of $1.3601 per share, amounting to $1,572. These sales were conducted under a Rule 10b5-1 trading plan, providing a prearranged schedule for selling shares. According to InvestingPro data, the stock is currently trading near its 52-week low of $1.33, while analysts maintain a strong buy consensus with price targets ranging from $4.25 to $9.00.
Additionally, on December 2, McDermott acquired 6,540 shares through the settlement of vested restricted stock units, which did not involve any cash transaction. Following these activities, McDermott's direct ownership stands at 96,638 shares.
These transactions were part of a sell-to-cover arrangement to meet tax obligations associated with the vesting of restricted stock units, as outlined in the company's stock and incentive plan.
In other recent news, Verano Holdings Corp. has reported its financial performance for the third quarter of 2024. The company recorded a revenue of $217 million and a net loss of $43 million. Despite facing competition and severe weather challenges, CEO George Archos emphasized the firm's focus on operational efficiencies and cost management, with an expectation to save over $80 million annually from a potential future reclassification of cannabis to Schedule III.
The company revealed a cautious approach to expansion, particularly in the competitive Florida medical market, while monitoring consumer behavior amid economic pressures. In Ohio, regulatory delays have affected the launch of adult-use sales, but improvements are expected by 2025.
These are among recent developments for Verano Holdings, which is prioritizing growth initiatives and evaluating capital allocation options, including potential buybacks. 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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