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FINWIRES

Vireo Growth Will Acquire up to $35 Million in Assets From Cannabist

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Vireo Growth (VREO.CN) will buy certain cannabis cultivation, manufacturing and retail operations from Cannabist, which has begun bankruptcy and restructuring proceedings in Canada and the U.S.

The acquisitions, which will cost Vireo up to $35 million, consists of up to $18.75 million in cash and up to $16.25 million in seller notes. They will add up to 25 dispensaries, one cultivation and one production asset, bringing Vireo's pro forma retail footprint to 230 dispensaries, the statement said.

This transaction, which is subject to regulatory approval, would position Vireo as the second-largest dispensary network in the US with operations across 15 states, the company said.

"The acquisition of select Cannabist assets meaningfully expands our operational footprint, strengthens our vertically integrated platform, and adds a highly experienced team along with operations in new markets for Vireo," said Vireo Chief Executive John Mazarakis. "This transaction reflects our disciplined and strategic approach to industry consolidation as we continue building one of the most capital efficient, vertically integrated cannabis platforms in the United States."

Vireo Growth shares were last seen up C$0.27, to C$14, on the Canadian Securities Exchange.

Price: $14.00, Change: $+0.27, Percent Change: +1.97%

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