Vireo Growth Moves to Acquire Majority of Schwazze Convertible Notes

Vireo Growth Inc. has announced that it has entered into definitive agreements to acquire a controlling position in the senior secured convertible notes of U.S. cannabis operator Medicine Man Technologies Inc., known publicly as Schwazze.

Acquisition Details

Under the agreement, Vireo Growth will acquire approximately 86% of Schwazze’s outstanding senior secured convertible notes from third-party noteholders. The purchase will be made substantially below par value for a total consideration of about $62 million, payable in subordinate voting shares of Vireo at closing.

The deal values Vireo’s subordinate voting shares at a deemed price of $0.54 per share.

Expected Closing Timeline

The transaction is expected to close later this month, subject to customary conditions, including receipt of all necessary regulatory and corporate approvals.

Company officials stated that the move aligns with Vireo’s broader mergers and acquisitions strategy, further positioning the company for long-term growth in the U.S. cannabis market.

Strategic Significance

By securing a majority of Schwazze’s convertible notes, Vireo Growth strengthens its leverage within the competitive multistate cannabis industry. Schwazze, based in Colorado, has been a prominent operator in several U.S. markets, and the deal provides Vireo with a financial foothold in the company’s ongoing development.

The announcement underscores Vireo’s continued focus on strategic acquisitions as a means of expanding its influence and market share across the U.S. cannabis landscape.

Looking Ahead

Once completed, the transaction is expected to play a significant role in Vireo Growth’s expansion strategy, offering potential for enhanced shareholder value through its stake in Schwazze’s future growth.

The company reiterated that the deal remains subject to closing conditions but anticipates finalizing before the end of October.

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