Vireo Health Announces Forced Redemption of Warrants Issued in Conjunction with March 2020 Private Placement
— Successful financing helped drive improvements in operating performance —
— Management expects redemptions to result in CAD $13.1 million of cash proceeds —
MINNEAPOLIS, Nov. 16, 2020 /PRNewswire/ — Vireo Health International, Inc. (“Vireo” or the “Company”) (CNSX: VREO, OTCQX: VREOF), the science-focused, multi-state cannabis company with active operations in exclusively medical-only markets and licenses in seven states and the Commonwealth of Puerto Rico, today announced that it has exercised its right to force the redemption of all subordinate voting share purchase warrants (the “Warrants”) issued to participants in the Company’s previously-announced private placement offering, which closed on March 10, 2020 (the “Offering”).
Each Warrant issued in conjunction with the Offering entitles the holder to purchase one subordinate voting share in the capital of Vireo for a period of three years from the date of issuance at an exercise price of CAD $0.96 per share, subject to adjustment in certain events. Vireo retained the right to require the redemption of these Warrants if the Company’s five-day volume-weighted-average-price (“VWAP”) on the Canadian Securities Exchange (CSE) exceeded CAD $1.44. This milestone was achieved during the trading period from November 3, 2020 through November 9, 2020. Management expects these redemptions to result in the issuance of 13,651,574 additional subordinate voting shares and cash proceeds of approximately CAD $13.1 million prior to the close of the current November.
The private placement offering we completed earlier this year was priced modestly to balance the near-term requirements of our business with the long-term interests of shareholders. We invested that capital prudently to position Vireo to begin generating positive cash flow.
Chairman and Chief Executive Officer, Kyle Kingsley, M.D.
We remain pleased with the trajectory of our operating performance since March and expect to utilize a portion of the proceeds from these redemptions to fund additional investments consistent with our strategy of increasing scale and margins in our core markets.
About Vireo Health International, Inc.
Vireo Health International, Inc. (“Vireo” or the “Company”) is a physician-led cannabis company focused on bringing the best of technology, science, and engineering to the cannabis industry. Vireo manufactures proprietary, branded cannabis products in environmentally-friendly, state-of-the-art greenhouses and other facilities and distributes its products through its growing network of Green GoodsTM retail dispensaries and through hundreds of third-party dispensaries in seven states. Vireo’s team of more than 425 employees, led by scientists, engineers, and cultivation experts, is focused on efficiency and the creation of best-in-class products, while driving scientific innovation within the cannabis industry and developing meaningful intellectual property. Today, Vireo is licensed to grow and/or process cannabis in eight markets. The Company is operational in seven of those eight markets – including the core markets of Arizona, Maryland, Minnesota, New Mexico, and New York. The Company holds 32 total retail dispensary licenses, of which 13 are currently open for business and seven more are in development. For more information about Vireo Health, please visit www.vireohealth.com.
