Vireo Growth Closes Colorado Retail Deal, Secures Bank-Led Credit Line

MINNEAPOLIS – Vireo Growth Inc. announced it had received all required regulatory approvals and formally closed its acquisition of certain Colorado retail assets from PharmaCann Inc. Additionally, the company disclosed a senior secured asset-based revolving credit facility arranged through Bank of Montreal.

The PharmaCann transaction, first announced in December 2025, transferred 17 operational dispensaries, along with leases, licenses, inventory, and intellectual property tied to the LivWell brand to Vireo. Total consideration came to approximately $49 million, structured as the issuance of Vireo subordinate voting shares plus the assumption of certain liabilities, with closing adjustments reflecting inventory levels and trade payables at the time of transfer. The deal expands Vireo’s Colorado retail count to 56 operational locations.

Vireo had operated the acquired locations under a Management Services Agreement beginning in March 2026, giving its team several months to familiarize itself with staffing, systems, and supply chains before formally taking ownership. CEO John Mazarakis said the approach validated the company’s integration model, noting that leadership changes, product assortment improvements, and technology upgrades had already been underway. He added that further performance improvement is expected once the locations are fully absorbed into Vireo’s existing Colorado platform.

The credit facility carries an initial commitment of $65 million with capacity to expand to $85 million, and further to $105 million via a $20 million accordion feature. The five-year revolving structure is secured by substantially all assets of Vireo’s non-Cannabis subsidiaries – a structural approach that sidesteps the federal banking restrictions that continue to limit direct credit access for plant-touching Cannabis operations.

Pricing is set at SOFR plus a margin of 1.75% to 2%, or the base rate plus 0.75% to 1%, with the applicable spread tied to average availability. An unused commitment fee of 0.25% annually applies to undrawn balances. Proceeds may fund working capital, capital expenditures, permitted acquisitions, and the refinancing of existing subsidiary debt. CFO Tyson Macdonald called it a milestone in Vireo’s capital structure evolution, citing scalability and support for further M&A activity.

The dual announcements came roughly a week after Vireo disclosed a four-deal entry into Ohio and the planned acquisition of Planet 13 Holdings, underscoring the pace at which the MSO is building scale. The company now reports operations across 10 states and more than 170 dispensaries.

The credit facility’s architecture deserves particular attention. Bank-led revolving credit in a Cannabis-adjacent corporate structure, priced at spreads more typical of an investment-grade borrowing base than a Cannabis-adjacent platform, signals that institutional capital is finding workable pathways into the sector without waiting for federal reform. Colorado will be the near-term test for Vireo’s integration thesis: a mature, price-compressed adult-use market that has squeezed margins industry-wide. The company’s Q2 2026 earnings call, scheduled for August 11, will be the first opportunity to place hard operational numbers against an increasingly ambitious growth plan.