Vireo Growth Inc. Completes Strategic Acquisition of Notes
Vireo Growth Inc. Completes Strategic Acquisition
Vireo Growth Inc. (CSE: VREO; OTCQX: VREOF) proudly announces its recent acquisition of outstanding senior secured convertible notes from Medicine Man Technologies Inc., known as Schwazze. This acquisition aligns with Vireo's objective to expand its footprint in the cannabis industry.
Understanding the Acquisition
The decision to acquire these notes reflects Vireo's commitment to strengthening its position within the cannabis sector. The value of the notes was around $91 million, comprising both principal and interest as of a recent date.
Vireo conducted this acquisition for approximately $62 million, showcasing a significant discount relative to the par value. The company issued about 114,807,815 subordinate voting shares as a part of this transaction, a strategic move that highlights Vireo's proactive approach to investment.
The Restructuring Support Agreement
In tandem with the acquisition of these notes, Vireo has entered into a Restructuring Support Agreement with Schwazze. This agreement outlines a comprehensive strategy to restructure Schwazze's operations and capital framework through various transactions. One key element is the planned sale of significant Schwazze assets to a new entity, designated as NewCo, which will be predominantly owned by Vireo.
This asset sale signifies a crucial step towards unwinding Schwazze’s remaining operations, allowing both companies to focus on aligning their resources for future growth.
Anticipating Future Developments
With the expected benefits from this acquisition, Vireo looks forward to what lies ahead. The company foresees an exciting transformation, focusing not only on operational enhancements but also on enhancing shareholder value. The credit bid made by Vireo in connection with the asset sale could result in a streamlined transition of Schwazze's valuable assets.
In total, NewCo is being set up to undertake the acquired assets, with backing from additional financing to assist with debt obligations and operational expenses. Vireo aims to allocate this capital effectively to ensure a smooth transition and robust operational setup.
Leadership Remarks
John Mazarakis, the CEO of Vireo, stated, “We are delighted to announce the signing of this restructuring agreement and the acquisition of the senior secured notes. This venture offers promising outcomes for all involved parties. We eagerly anticipate the integration of Schwazze’s talented team and their extensive retail dispensaries into Vireo as we implement our restructuring strategy.”
Forrest Hoffmaster, CEO of Schwazze, also shared his enthusiasm: “The completion of this transaction, together with our anticipated partnership with Vireo, begins an exciting chapter for Schwazze. We are committed to maintaining our service to our loyal customers in new and innovative ways.”
About Vireo Growth Inc.
Founded in 2014, Vireo Growth Inc. has emerged as a frontrunner in the medical cannabis industry. The company is dedicated to creating a disciplined, strategically aligned, execution-focused platform that leverages both local and national strengths. Vireo prioritizes hiring industry leaders and implementing strategies that drive substantial value in the market.
With a focus on long-term growth and commitment to stakeholders, Vireo is excited about expanding its influence in the cannabis market as it continues to evolve.
Frequently Asked Questions
What is the significance of Vireo's acquisition of Schwazze notes?
This acquisition allows Vireo to strengthen its presence in the cannabis industry and paves the way for future growth and operational efficiency.
How does the Restructuring Support Agreement benefit Vireo?
The agreement facilitates a comprehensive restructuring of Schwazze’s assets, allowing Vireo to maximize their value while streamlining operations.
What are Vireo’s plans following the acquisition?
Vireo plans to leverage the acquired assets to expand its operational capabilities and enhance its market offerings.
Who is leading Vireo Growth Inc.?
John Mazarakis serves as the Chief Executive Officer, guiding the company through its strategic initiatives.
How can I get more information about Vireo Growth Inc.?
Individuals interested in learning more can visit Vireo's official website for further details about their operations and initiatives.
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