Verano misses revenue estimate but says it’s slowing it capital spending

Verano Holdings Corp. shares rose 2.9% on Monday after the cannabis company said it was slowing down some of its capital spending and that it’s bullish on prospects in Maryland after the state voted to allow cannabis sales to adults 21 and over. Verano said it has paused some construction in Pennsylvania and is halting future rollout of additional square footage in Florida to keep its capital costs in line. Looking ahead, Verano said it sees potential growth in five future adult use markets representing 43 million Americans where it maintains field operations and competitive positions including Maryland and Connecticut. Verano said its third-quarter loss widened to $43 million, or 13 cents a share, from a loss of $12.5 million, or 4 cents a share, in the year-ago quarter. Revenue increased to $227.6 million in the three months ended Sept. 30, from $206.5 million in the year-ago quarter. Verano missed the analyst estimates for a loss of 2 cents a share and revenue of $229.1 million, according to a FactSet survey.

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