Vireo Growth Inc. Announces Closing of Oversubscribed US$81 Million Equity Securities Offering
– Oversubscribed equity raise at US$0.625 per share capitalizes Company with a strong balance sheet–
– Financing enables Vireo to fund investments in additional organic and acquisitive growth opportunities –
MINNEAPOLIS, Dec. 31, 2024 (GLOBE NEWSWIRE) — Vireo Growth Inc. (“Vireo” or the “Company”) (CSE: VREO; OTCQX: VREOF), today announced that on December 30, 2024, it closed the previously-announced private placement offering of Subordinate Voting Shares of the Company (the “Offering”). Investors who participated in the Offering subscribed for 129,536,874 Subordinate Voting Shares at a share price of US$0.625, a 16.8% premium to the closing share price on the OTCQX on December 27, 2024. The Offering raised gross proceeds of approximately US$81 million, which includes a portion of the oversubscribed demand from the initially planned US$75 million equity raise. The Company intends to use the net proceeds from the Offering for business development, including organic and acquisitive growth investments, as well as working capital and general corporate purposes.
We are pleased to announce this closing, which marks the beginning of a new chapter for Vireo. On behalf of our entire management team and board, I want to thank our current investors for their ongoing support and extend a warm welcome to our new investors who participated in the offering and share our vision for Vireo’s future.
Chief Executive Officer John Mazarakis
The Subordinate Voting Shares issued in the financing were issued in reliance upon exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and applicable Canadian and U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Lineage Merchant Partners, LLC (“Lineage”) acted as placement agent for the financing. Securities placed via Lineage were offered through GT Securities, Inc. (member FINRA, SIPC).
Chicago Atlantic formed a special purpose vehicle (“SPV”) in order to pool investor capital for the purpose of subscribing for a portion of the Subordinate Voting Shares issued under the equity securities offering. The issuances of shares to such SVP will be considered a “related party transaction” for the purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61- 101”), as Chicago Atlantic is a “related party” to Vireo as defined in MI 61-101. The transaction will be exempt from the formal valuation and minority shareholder approval requirements available under MI 61-101 on the basis that neither the fair market value of the securities to be issued, nor the fair market value of the consideration for the securities to be issued, insofar as it involves related parties, exceeds 25% of the market capitalization of the Company.
About Vireo
Vireo was founded as a pioneer in medical cannabis in 2014 and sustained with an entrepreneurial drive that fuels our ongoing commitment to serve and delight our key stakeholders, most notably our customers, our employees, our shareholders, our industry collaborators, and the communities in which we live and operate. We work every day to get better and our team prioritizes 1) empowering and supporting strong local market leaders and 2) strategic, prudent capital and human resource allocation. For more information, please visit www.vireogrowth.com.
