Marijuana multistate operator Vireo Growth raised $6 million more than it hoped for in a private placement offering that closed Dec. 30.
The Minneapolis-based company initially planned a $75 million equity raise but instead raised about $81 million, according to a news release.
Vireo plans to use net proceeds from the offering for business development – including growth investments, working capital and general corporate purposes.
The closing “marks the beginning of a new chapter for Vireo,” CEO John Mazarakis said.
Mazarakis, who was named CEO last month, is a co-founder of Chicago Atlantic, a cannabis-focused investment company that formed a special-purpose vehicle to pool investor capital, enabling it to subscribe for a portion of the subordinate voting shares issued in the offering.
After raising the initial $75 million, Vireo acquired four single-state operators and a delivery and analytics platform:
- Deep Roots Harvest in Nevada.
- The Flowery in Florida (through a binding memorandum of understanding).
- 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.”
The acquisitions give Vireo a presence in seven states as well as nine cultivation facilities and 48 retail outlets.
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