The state has cleared Ohio Medical Solutions to begin operations at its Akron processing facility on East Tallmadge Avenue.

OMS is the Ohio affiliate of Vireo Health International Inc., a Vancouver-based company that trades on the Canadian Stock Exchange under VREO and has U.S. operations headquartered in Minneapolis. A state spokesperson confirmed OMS received its certificate of operation (COO) Aug. 9.

OMS is just the ninth marijuana processor with a COO in hand at this point out of 39 provisionally licensed processing companies. That end of the marijuana industry, which involves the production of THC-infused products like oils, edibles and topicals, is coming together very slowly.

The first processors to come online were Grow Ohio in Newton Township and Standard Wellness in Gibsonburg, both of which secured COOs in March. Other companies that have opened processing labs so far include FN Group Holdings in Ravenna and Buckeye Relief in Eastlake.

"We are delighted that Ohio Medical Solutions will begin manufacturing Vireo products for the benefit of Ohio patients," said Vireo CEO Kyle Kingsley in a news release. "The City of Akron has been great to us and as our business grows, we look forward to continuing to create new jobs and make a positive impact on the local economy."

OMS' Akron facility is in a 11,500-square-foot renovated factory space. In a followup with Crain's, Kingsley said the total investment to acquire the property and prep it for processing was about $4 million.

It will feature 12-15 employees once operations officially commence — which will be around the end of the month as some equipment is still being installed — with potential for scaling up staff depending on product demand. It will be run by Marie Walchalk, a Portage County resident and lifelong Ohioan.

The company will first roll out oral solutions, soft gel capsules and bulk vaporizer oils within its Vireo Spectrum line. Products in store for the future could include topicals and prefilled vaporizer cartridges. Kingsley also said the company is "exploring" edibles and beverages "in the near future."

Overall, Vireo presently comprises eight cultivation and/or processing facilities in Ohio, New Mexico, Minnesota, New York, Pennsylvania, Maryland, Rhode Island and Arizona. Other facilities are being built out in Puerto Rico, Massachusetts and Nevada. The company runs 11 dispensaries across Minnesota, New York, Arizona and New Mexico and will open three more in Pennsylvania in coming weeks, a spokesperson said.

For now, the only operation for the business in Ohio is its Akron processing lab.

"Vireo is certainly interested in expanding to as many states as possible; however, we chose Ohio because we feel the market is quickly growing and vastly underserved," Kingsley said in an email. "The number of registered patients and caregivers is increasing monthly and Ohio's medical marijuana patients don't have enough options for scientifically engineered and medically focused products like the items that Vireo produces. Additionally, Akron itself presents a tremendous opportunity to help a rebuilding community, access a workforce in need of opportunity and develop strong ties to local business, governments and citizens."

Kingsley said the current state of the marijuana market here — which features more than 53,000 registered patients, but with only about half of them having purchased any products yet, as of July data released earlier this month — is not a concern right now.

In fact, he's emboldened by the fact that so few processors are operating, which may present opportunities for companies early to the game.

"We view Ohio as underserved but quickly growing. That makes this an ideal time for us to develop our brand, ramp up production and establish relationships with patients and dispensaries alike," Kingsley said. "Immediate revenue in 2019 is a non-issue for Vireo. Our goal is to build a foundation that will allow us to help patients in Ohio for many years to come."



Correction: An earlier version of this story reported that Vireo was just the fifth processor to secure a certificate of operation in Ohio based on publicly available data provided by the state. A state spokesperson clarified that Vireo is the ninth processor with a COO in hand at this time.