Vireo Growth Completes Schwazze Assets Acquisition

MINNEAPOLIS – In a move that instantly reshapes the competitive map in two key Cannabis states, Vireo Growth Inc. has completed its acquisition of major assets from Schwazze, gaining control of dozens of established dispensaries and production facilities in Colorado and New Mexico.

The deal transfers 24 dispensaries in Colorado, 21 dispensaries in New Mexico and one manufacturing facility in each of those states to a new entity majority owned by Vireo. The transaction was completed at an assumed share price of $0.661 for Vireo’s subordinate voting shares, according to the company’s announcement.

Justin Dye, a former Schwazze executive, will serve as chairman of Vireo’s Colorado and New Mexico operations. Forrest Hoffmaster, another Schwazze veteran, was named chief executive of the same regional business unit.

John Mazarakis, Vireo’s CEO, said the purchase fits the company’s approach to measured expansion. “This transaction represents a meaningful step in the continued execution of our disciplined growth strategy, enabling Vireo to expand its presence in key markets through the acquisition of established retail operations at an implied estimated valuation of under 4x pro forma EBITDA,” he stated in the release. He added that the deal gives Vireo a starting point to build a larger retail network in the two states that could reach more than 75 stores, provided market conditions, regulatory approvals and capital allow.

Hoffmaster noted the change marks a fresh start for the former Schwazze staff. “This transaction marks the beginning of a new chapter for the Schwazze team,” he said. “We are proud to contribute our capabilities to Vireo’s growing platform.”

The move concludes a process that began last October when Vireo bought a majority of Schwazze’s senior secured convertible notes at a discount and entered a restructuring support agreement. That led to a credit-bid asset sale in November 2025 and eventual regulatory clearances this month.

The closing gives Vireo a sizable retail and production footprint in two mature Cannabis markets at what the company describes as an efficient multiple. The addition of 45 stores and two manufacturing sites increases Vireo’s operational scale without the full cost of greenfield builds. Integration of the Schwazze leadership team should ease the transition, yet the real challenge will be whether same-store performance improves under Vireo’s systems and whether the combined Colorado-New Mexico presence can reach the targeted 75-plus locations. In a sector where capital remains tight and regulators move deliberately, deals like this illustrate how debt-driven restructurings continue to reshape ownership among MSOs.