Vireo Growth Secures $75 Million Equity Financing and Acquires Four Cannabis Operators
Minneapolis-based marijuana multistate operator Vireo Growth has taken a significant leap forward, securing $75 million in equity financing and acquiring four single-state cannabis operators along with a delivery and analytics platform. This bold move enhances Vireo’s operational footprint and positions the company for accelerated growth and innovation in the competitive cannabis industry.
Strategic Acquisitions Expand Vireo’s Reach
Vireo Growth’s acquisitions include:
Deep Roots Harvest in Nevada, a leading cannabis cultivator and retailer.
The Flowery in Florida, through a binding memorandum of understanding to acquire this high-growth operator.
Proper Brands in Missouri, a vertically integrated cannabis company.
WholesomeCo Cannabis in Utah, alongside its delivery and analytics platform, Arches, which Vireo developed and spun out in 2023.
The addition of Arches aligns with Vireo’s strategy to integrate cutting-edge delivery and analytics technology into its operations. Arches will be licensed exclusively to Vireo’s operating companies as regulations evolve.
An Expanded Footprint Across Key States
These acquisitions expand Vireo’s operational footprint to seven states, bolstering its capabilities with:
Nine cultivation facilities.
48 retail outlets strategically positioned to serve growing cannabis markets.
The $75 million equity financing is described as being offered at a “significant premium to market,” underlining investor confidence. Approximately 120 million subordinate voting shares will be issued as part of the equity securities offering.
Kyle Kingsley, co-executive chair of Vireo Growth, commented, “When fully completed, these transactions will transform our balance sheet, strengthen our competitive position, and enable us to deliver long-term value for stakeholders.”
Leadership Revitalization: Executive Team Changes
Vireo Growth’s transformation is also reflected in key updates to its leadership 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 president of Vireo and CEO of its subsidiaries in Maryland, Minnesota, and New York.
John Mazarakis emphasized the importance of these acquisitions, stating, “Together, we’ve established a powerful platform poised for success in today’s operating environment, with an industry-leading balance sheet, profitability, and growth profile.”
Positioned for a Competitive Future
By rebranding from Goodness Growth Holdings earlier this year, Vireo Growth signaled its intention to redefine its approach to the cannabis industry. The recent equity financing and strategic acquisitions mark a pivotal step in achieving this vision.
The company’s robust balance sheet and expanding presence across high-growth markets place it in a strong position to capitalize on emerging opportunities while navigating the complex regulatory landscape.
Vireo’s integrated approach, combining cultivation, retail, and technological innovation, underscores its commitment to delivering value to stakeholders and advancing the cannabis sector’s potential.
