Vireo Goes on Shopping Spree of Undervalued Cannabis Assets

NEW YORK–Cannabis multistate operator (MSO) Vireo Growth has taken a significant leap forward by securing $75 million in equity financing and acquiring four companies, including three single-state operators and a delivery and analytics platform. This marks a major milestone for the Minneapolis-based company, expanding its footprint and strengthening its market position.

Details of the Acquisitions

Vireo’s acquisitions include:

• Deep Roots Harvest in Nevada.
• The Flowery in Florida, via a binding memorandum of understanding.
• Proper Brands in Missouri.
• WholesomeCo Cannabis in Utah, along with Arches, a delivery and analytics platform spun out in 2023. Arches will be licensed exclusively to Vireo’s portfolio of companies as regulations evolve.

Expanding Operations

These acquisitions expand Vireo’s presence to seven states, adding nine cultivation facilities and 48 retail outlets to its portfolio. The company emphasized that the $75 million equity financing represents a premium to market, involving the issuance of approximately 120 million subordinate voting shares. Co-Executive Chair Kyle Kingsley noted this transformation will enhance their competitive edge and deliver long-term value for stakeholders.

Strategic Leadership Changes

As part of the restructuring, Vireo announced changes to its executive team:

• John Mazarakis, co-founder of Chicago Atlantic, was appointed CEO and co-executive chair.
• Tyson Macdonald, former partner at TrueRise Capital, joined as chief financial officer.
• Amber Shimpa will remain as president and CEO of subsidiaries in Maryland, Minnesota, and New York.

Mazarakis praised the acquisitions in hs press release here, stating that the platform positions Vireo for success with an industry-leading balance sheet and growth profile.

Context of the MSO Market

This move underscores the MSO trend of acquiring smaller operators and technology platforms to navigate complex regulations and scale operations efficiently. With a broader reach, Vireo Growth is well-positioned to capitalize on new opportunities in an evolving cannabis market.