Minnesota-based Vireo Growth Inc. (CSE: VREO) (OTCQX: VREOF) pulled off a massive capital raise last month with the issuance of 129.5 million new shares of stock at a price of $0.625 apiece, which brought in $81 million in fresh capital to the multistate operator.
Vireo announced the move several weeks ago, but the company underestimated demand from cannabis investors at the time, with a projected raise of $75 million from 120 million new shares. Vireo said it plans to use the funds for “business development, including organic and acquisitive growth investments, as well as working capital and general corporate purposes.”
The new shares and influx of capital were facilitated by cannabis real estate investment trust Chicago Atlantic, which is already Vireo’s largest shareholder. Chicago Atlantic formed a special purpose vehicle with which to purchase Vireo shares last month, according to a press release.
Chicago Atlantic was also instrumental in setting up four acquisition deals for Vireo that were announced last month simultaneously with the capital raise. Vireo will purchase Proper Brands in Missouri, Deep Roots Harvest in Nevada, WholesomeCo Cannabis in Utah, and The Flowery in Florida in an all-stock deal worth nearly $400 million, at the same per-share price at which Vireo just raised $81 million.
The acquisitions are not expected to close for another six months, but once they do, the company’s cannabis industry footprint will grow to seven states with 48 total dispensaries and more than 1 million square feet of cultivation canopy.
In addition, Chicago Atlantic co-founder John Mazarakis stepped into the role of CEO at Vireo, and there were other C-suite reshufflings as part of the capital raise and acquisition deals.
[[{“value”:”The Minnesota-based company expected to raise $75 million through the issuance of shares.
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