Vireo Growth Acquires PharmaCann Colorado Assets

DENVER – Vireo Growth Inc. reached an agreement with PharmaCann Inc. to buy its 17 operational dispensaries and related assets in Colorado for roughly $49 million in company shares, a move that bolsters Vireo’s retail presence in one of the nation’s longtime recreational Cannabis states. The all-stock transaction marks another step in Vireo’s push to consolidate operations in mature markets and comes as PharmaCann reshapes its portfolio after years of expansion.

Under the asset purchase agreement, Vireo will take over leases for the 17 stores, along with necessary licenses and permits, inventory on hand, select contracts, and intellectual property tied to the LivWell brand, a well-known name in Colorado’s dispensary scene. The deal’s price tag reflects adjustments for factors like current inventory and outstanding trade payables, with Vireo also assuming some liabilities at closing. Shares issued will carry resale restrictions under Canadian securities rules, given Vireo’s listing on the TSX Venture Exchange.

Once finalized, the acquisition will lift Vireo’s Colorado store count to 41, cementing its status among the state’s top retail players in the adult-use sector. To bridge the gap until then, Vireo has inked a management services pact with PharmaCann, enabling it to run the sites pending regulatory nods from state and local authorities. Regulators in Colorado, known for a deliberate pace on transfers, must greenlight the licenses, a process that often stretches into months.

Vireo, founded in 2014 and headquartered in Minneapolis, has leaned into acquisitions to build scale. This purchase signals Vireo’s confidence in Colorado’s Cannabis market crowded with over 700 stores, even as overall sales have shown year-over-year declines and limited growth in 2025. State revenue data indicates recreational and medical Cannabis sales totaled about $890 million from January through August 2025, down roughly 4% from the same period in 2024, when full-year sales reached approximately $1.4 billion.

For PharmaCann, based in Chicago and operating across five states, the sale trims exposure in a high-competition arena. The company, which cultivates and wholesales alongside retail, faced headwinds this year, including defaults on rent for 9 of its 11 Colorado properties. By offloading these assets, PharmaCann can redirect resources to cultivation and newer markets, while retaining its core adult-use and medical offerings.

Critics might question the timing. Colorado’s recreational sales dipped in the first 10 months of 2025, squeezed by illicit imports and consumer fatigue. Yet Vireo’s bet underscores a broader trend: operators doubling down on proven geographies over speculative ones. PharmaCann’s exit from these sites, part of a 2021 spree that added scale but strained finances, highlights the risks of rapid growth in oversupplied states.

In the general run of things, this transaction fits a pattern of rationalization in the U.S. Cannabis industry. Vireo emerges with a denser network primed for synergies in supply and staffing, while PharmaCann gains liquidity to fortify its upstream operations. In Colorado’s cutthroat retail game, fewer hands on the wheel could mean steadier paths ahead for both, a reminder that smart pruning often yields the strongest branches.