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Chicago Atlantic and Lineage Merchant Partners announced merger agreements between Vireo Growth and three single-state cannabis operators: Proper Cannabis (Missouri), Deep Roots Harvest (Nevada), and WholesomeCo Cannabis (Utah). The company also signed an MOU to acquire The Flowery (Florida).
The combined entity will operate across seven states, managing 1,043,500 square feet of cultivation and manufacturing space, and 48 retail dispensaries. The deals are collectively valued at approximately $397 million, supported by a $75 million equity offering at $0.625 per share.
John Mazarakis, Chicago Atlantic’s co-founder, has been appointed CEO and Co-Executive Chairman of Vireo, bringing experience from overseeing $2 billion in cannabis-related investments and leading the public listing of a cannabis-focused mortgage REIT (NASDAQ: REFI).
Chicago Atlantic e Lineage Merchant Partners hanno annunciato accordi di fusione tra Vireo Growth e tre operatori di cannabis a stato singolo: Proper Cannabis (Missouri), Deep Roots Harvest (Nevada) e WholesomeCo Cannabis (Utah). L’azienda ha anche firmato un MOU per acquisire The Flowery (Florida).
L’entità combinata opererà in sette stati, gestendo 1.043.500 piedi quadrati di spazio per coltivazione e produzione, e 48 dispensari al dettaglio. Gli accordi hanno un valore complessivo di circa 397 milioni di dollari, sostenuti da un’offerta di capitale di 75 milioni di dollari a 0,625 dollari per azione.
John Mazarakis, co-fondatore di Chicago Atlantic, è stato nominato CEO e Co-Presidente Esecutivo di Vireo, portando esperienza nella supervisione di investimenti legati alla cannabis per un valore di 2 miliardi di dollari e nella guida della quotazione pubblica di un REIT ipotecario focalizzato sulla cannabis (NASDAQ: REFI).
Chicago Atlantic y Lineage Merchant Partners anunciaron acuerdos de fusión entre Vireo Growth y tres operadores de cannabis de un solo estado: Proper Cannabis (Missouri), Deep Roots Harvest (Nevada) y WholesomeCo Cannabis (Utah). La empresa también firmó un MOU para adquirir The Flowery (Florida).
La entidad combinada operará en siete estados, gestionando 1.043.500 pies cuadrados de espacio de cultivo y fabricación, y 48 dispensarios al por menor. Los acuerdos tienen un valor colectivo de aproximadamente 397 millones de dólares, respaldados por una oferta de capital de 75 millones de dólares a 0,625 dólares por acción.
John Mazarakis, cofundador de Chicago Atlantic, ha sido nombrado CEO y Co-Presidente Ejecutivo de Vireo, aportando experiencia en la supervisión de inversiones relacionadas con la cannabis por un total de 2 mil millones de dólares y liderando la cotización pública de un REIT hipotecario centrado en cannabis (NASDAQ: REFI).
시카고 애틀랜틱과 라인이지 상인 파트너스는 비레오 성장과 세 개 주의 대마초 운영자: 프로퍼 대마초 (미주리), 딥 루츠 하베스트 (네바다), 그리고 홀섬코 대마초 (유타) 간의 합병 계약을 발표했습니다. 이 회사는 또한 플로리다에 있는 더 플라우리(The Flowery)를 인수하기 위한 양해각서(MOU)를 체결했습니다.
통합된 단체는 7개 주에서 운영되며, 1,043,500 평방 피트의 재배 및 제조 공간과 48개의 소매 약국을 관리할 것입니다. 거래의 총 가치는 약 3억 9천7백만 달러로, 주당 0.625달러의 7천5백만 달러 자본 제공에 의해 지원됩니다.
시카고 애틀랜틱의 공동 창립자인 존 마자라키스가 비레오의 CEO 및 공동 집행 회장으로 임명되었으며, 20억 달러 규모의 대마초 관련 투자 감독 경험과 대마초에 초점을 둔 모기지 REIT(NASDAQ: REFI)의 상장 리더십을 가져왔습니다.
Chicago Atlantic et Lineage Merchant Partners ont annoncé des accords de fusion entre Vireo Growth et trois opérateurs de cannabis à l’échelle d’un seul État : Proper Cannabis (Missouri), Deep Roots Harvest (Nevada) et WholesomeCo Cannabis (Utah). La société a également signé un MOU pour acquérir The Flowery (Floride).
L’entité combinée opérera dans sept États, gérant 1 043 500 pieds carrés d’espace de culture et de fabrication, ainsi que 48 dispensaires de détail. Les opérations ont une valeur totale d’environ 397 millions de dollars, soutenues par une offre de capital de 75 millions de dollars à 0,625 dollar par action.
John Mazarakis, cofondateur de Chicago Atlantic, a été nommé PDG et Co-Président Exécutif de Vireo, apportant son expérience de la supervision d’investissements liés au cannabis d’une valeur de 2 milliards de dollars et la direction de l’introduction en Bourse d’un REIT hypothécaire axé sur le cannabis (NASDAQ: REFI).
Chicago Atlantic und Lineage Merchant Partners haben Fusionen zwischen Vireo Growth und drei einstaatlichen Cannabis-Betreibern angekündigt: Proper Cannabis (Missouri), Deep Roots Harvest (Nevada) und WholesomeCo Cannabis (Utah). Das Unternehmen hat auch ein MOU zur Übernahme von The Flowery (Florida) unterzeichnet.
Das kombinierte Unternehmen wird in sieben Bundesstaaten tätig sein, verwaltet 1.043.500 Quadratfuß Anbau- und Produktionsfläche und 48 Einzelhandelsgeschäfte. Die Deals haben einen Gesamtwert von etwa 397 Millionen Dollar, unterstützt von einem Eigenkapitalangebot in Höhe von 75 Millionen Dollar zu einem Preis von 0,625 Dollar pro Aktie.
John Mazarakis, Mitbegründer von Chicago Atlantic, wurde zum CEO und Co-Exekutivvorsitzenden von Vireo ernannt und bringt Erfahrungen aus der Überwachung von 2 Milliarden Dollar an cannabisbezogenen Investitionen und der Leitung der öffentlichen Notierung eines auf Cannabis ausgerichteten Hypotheken-REIT (NASDAQ: REFI) mit.
Positive
Significant expansion from 3 to 7 states through strategic mergers
Large operational footprint with 1,043,500 sq ft of cultivation space and 48 retail locations
Secured $75 million equity financing to support growth
Acquisition of Arches analytics and distribution technology platform
Negative
Substantial dilution risk from $75 million equity offering at $0.625 per share
Integration risks across multiple state operations
Pending regulatory approvals could delay completion
High execution risk managing operations across 7 different state markets
Insights
This transformative merger represents a significant strategic move in the cannabis industry, consolidating operations across seven states with a total deal value of $397 million. The transaction includes a substantial $75 million equity offering at $0.625 per share, demonstrating strong financial backing. The combined entity will control an impressive 1,043,500 square feet of cultivation and manufacturing space and 48 retail dispensaries, creating substantial operational scale.
The merger’s strategic value lies in its decentralized approach, allowing local operators to maintain autonomy while benefiting from shared corporate services. This structure could drive operational efficiencies and market adaptability. The involvement of Chicago Atlantic, which has overseen $2 billion in cannabis investments, adds credibility and expertise to the deal. The appointment of John Mazarakis as CEO, with his track record of scaling businesses, suggests strong execution potential.
The merger strategically positions the company in diverse cannabis markets, combining established operations in Minnesota, Maryland and New York with new markets in Florida, Missouri, Nevada and Utah. The acquisition of Arches, a technology platform, adds a valuable digital infrastructure component that could enhance distribution efficiency and data analytics capabilities.
The deal structure preserves local market expertise while creating economies of scale, which is important in the fragmented U.S. cannabis market. The inclusion of premium brands like The Flowery from Florida and established operators like Deep Root Harvest strengthens the company’s market positioning. This consolidation could potentially create a more resilient entity better equipped to navigate regulatory challenges and capitalize on market opportunities across multiple state jurisdictions.
12/18/2024 – 11:02 AM
CHICAGO–(BUSINESS WIRE)–
Chicago Atlantic and Lineage Merchant Partners are proud to announce the execution of definitive merger agreements entered into by Vireo Growth Inc. (“Vireo” or the “Company”) (CSE: VREO), in which Chicago Atlantic is the largest stockholder, with three leading single-state operators: Proper Cannabis (Missouri), Deep Roots Harvest (Nevada), and WholesomeCo Cannabis (Utah). The merger agreements with Wholesome and Proper include the acquisition of Arches, a cutting-edge analytics and distribution technology platform joint venture between Wholesome and Proper. In addition, the Company signed a binding memorandum of understanding to acquire The Flowery (Florida).
The combined entity (assuming Vireo completes all of the merger transactions) will span seven states, managing approximately 1,043,500 square feet of cultivation and manufacturing space across nine cultivation facilities, and operating 48 retail dispensaries. Supported by Chicago Atlantic, Vireo announced a $75 million equity securities offering at $0.625 per Vireo subordinate voting share, with closing subject to customary approvals, valuing the total deals collectively at approximately $397 million.
A New Vision for the Cannabis Industry
John Mazarakis, co-founder of Chicago Atlantic, has been appointed CEO and Co-Executive Chairman of Vireo.
As CEO, John Mazarakis will lead Vireo in creating the first comprehensive platform for cannabis operators. His mission is to empower operators to build sustainable, profitable businesses while preserving their unique cultures and addressing regulatory and capital challenges.
Mr. Mazarakis commented:
“I am thrilled to lead Vireo as we redefine the cannabis landscape with a decentralized approach that supports local expertise while leveraging shared corporate services. This model enables operators to adapt quickly to consumer behavior and capture incremental market share, creating significant opportunities for growth.”
Mr. Mazarakis brings a wealth of experience in cannabis and business operations. At Chicago Atlantic, he has overseen over $2 billion in cannabis-related investments and led the public listing of one of the first cannabis-focused mortgage REITs (Nasdaq: REFI) in 2021. His entrepreneurial career spans 25 years, during which he built and operated 35+ restaurants, developed over 1 million square feet of commercial real estate, and scaled a food distribution business from $12 million to $90 million in annual revenue in under two years.
Transaction Overview
Vireo currently has operations in three states, Minnesota, Maryland, and New York, and if consummated, the transactions would add four single-state operators, namely The Flowery (a fast-growing high-end premium producer from Florida), Proper Cannabis (a leading operator in Missouri), Deep Root Harvest (a leading operator in Nevada), and WholesomeCo Cannabis (a leading operator in Utah).
Positioned for Growth
Together, Chicago Atlantic and Vireo have established a robust platform with an industry-leading balance sheet, strong profitability, and a compelling growth profile positioning it for success in today’s evolving cannabis landscape.
For more information on the merger transaction, read Vireo’s merger announcement.
About Chicago Atlantic
Chicago Atlantic is a private markets alternative investment manager focused on industries and companies where demand for capital exceeds traditional supply. The firm’s investment strategies include opportunistic private credit and equity with focuses on loans to esoteric industries, specialty asset-based loans, liquidity solutions and growth and technology finance. Chicago Atlantic has closed over $2.3 billion in credit facilities since inception. Chicago Atlantic’s team of over 80 professionals has offices in Chicago, Miami, New York and London. For more information on Chicago Atlantic’s investment opportunities and financing products, visit chicagoatlantic.com.
About Vireo
Vireo was founded as a pioneer in medical cannabis in 2014 and sustained with an entrepreneurial drive that fuels its ongoing commitment to serve and delight its key stakeholders, most notably its customers, its employees, its shareholders, its industry collaborators, and the communities in which they live and operate. Vireo works every day to get better and its team prioritizes 1) empowering and supporting strong local market leaders and 2) strategic, prudent capital and human resource allocation. For more information, please visitvireogrowth.com.
About Lineage Merchant Partners
Lineage Merchant Partners is a unique investment banking advisor singularly serving the cannabis industry since its founding in 2021. The firm’s focus is providing M&A, capital raising, and strategic advisory services with an understanding of each client’s critical needs, bespoke positioning to the market for each engagement, and the development of long-term relationships. Our leadership team has a strong track record of strategic dealmaking experience across the cannabis industry in both an advisory and principal capacity. www.lineagemerchantpartners.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20241218764410/en/
Alise M. Edgcomb
Managing Director, Public Relations
(419) 202 – 3988
aedgcomb@chicagoatlantic.com
Source: Chicago Atlantic and Lineage Merchant Partners and Vireo
FAQ
What is the total value of Vireo’s merger transactions announced in 2024?
The total value of the merger transactions is approximately $397 million.
How many retail dispensaries will the combined Vireo entity operate?
The combined entity will operate 48 retail dispensaries across seven states.
What is the size of Vireo’s equity offering to support these mergers?
Vireo announced a $75 million equity securities offering at $0.625 per subordinate voting share.
Which states are included in Vireo’s expansion through these mergers?
The mergers add operations in Missouri, Nevada, Utah, and Florida to Vireo’s existing presence in Minnesota, Maryland, and New York.
How much cultivation and manufacturing space will the merged company manage?
The combined entity will manage approximately 1,043,500 square feet of cultivation and manufacturing space across nine facilities.
“}]] Major cannabis industry consolidation as Vireo Growth merges with operators across Missouri, Nevada, Utah, and Florida, creating a multi-state giant with 1M+ sq ft cultivation footprint. Read More
