Marijuana MSO Vireo secures $75M funding, acquires 4 companies

Marijuana multistate operator Vireo Growth has received $75 million in equity financing and acquired four single-state operators as well as a delivery and analytics platform.

According to a Wednesday news release, Minneapolis-based Vireo’s acquisitions include:

• Deep Roots Harvest in Nevada.
• The Flowery in Florida (through a binding memorandum of understanding to acquire).
• Proper Brands in Missouri.
• WholesomeCo Cannabis in Utah as well as Arches, the delivery and analytics arm it “built and spun out” in 2023. Arches will be “licensed exclusively to the company’s portfolio of operating companies over time as regulations allow.”

Vireo’s expanded footprint

The acquisitions will give Vireo a presence in seven states as well as nine cultivation facilities and 48 retail outlets.

According to the release, the $75 million equity financing “represents a significant premium to market,” and the company plans to issue roughly 120 million subordinate voting shares “in relation to the equity securities offering.”

“When fully completed, these transactions will transform our balance sheet with an equity raise completed at a substantial premium to market, position us to capitalize on new competitive strengths and enable us to deliver more compelling long-term value for all stakeholders,” co-Executive Chair Kyle Kingsley said in a statement.

Executive team changes

Vireo, which rebranded from Goodness Growth Holdings in July, also announced updates to its C-suite:

• John Mazarakis, a co-founder of Chicago Atlantic business development company, was appointed CEO and co-executive chair.
• Tyson Macdonald, a former partner at Boston-based TrueRise Capital, was hired as chief financial officer.
• Amber Shimpa will remain president of Vireo and CEO of subsidiaries in Maryland, Minnesota and New York.

Mazarakis said in a statement that, during his time at Chicago Atlantic, “I admired each of these portfolio companies and their management teams and was pleased to assist their efforts to build sustainable, profitable businesses while navigating complex regulatory challenges and capital constraints.

“Together, we believe we’ve established a powerful platform that is poised for success in today’s operating environment, with an industry-leading balance sheet, profitability and growth profile.”