Vireo Growth Extends Cannabis Acquisition Streak With Maryland Deal

Vireo Growth Inc. (CSE: VREO) (OTCQX: VREOD) has wrapped up its previously announced acquisition of an indirect 49% equity interest in HA-MD, LLC. That’s the parent company of Chesapeake Integrated Health Institute and Maryland Alternative Relief.

The company said in a Thursday press release that the deal was wrapped up for a total consideration of $1.55 million.

The sum included $400,000 in cash paid at closing, a $400,000 promissory note carrying 8% annual interest and payable over five years, and $750,000 in Vireo shares.

The company paid the equity portion by issuing 37,035 subordinate voting shares at $20.25 per share following the share consolidation.

The latest move is part of the company’s acquisition-led expansion strategy. Vireo’s goal is to build scale across key cannabis markets nationwide and in adjacent businesses.

Vireo signed a definitive agreement to acquire C21 Investments in an all-stock transaction on Monday. The acquisition would expand Vireo’s footprint in Nevada by roughly 15 dispensaries, 158,000 square feet of cultivation and manufacturing capacity, and the award-winning Silver State Relief brand.

While Vireo is apparently pursuing a consolidation strategy across the U.S. cannabis sector, the company is simultaneously adding ancillary businesses that provide supply-chain, cultivation, and agricultural exposure.

The company wrapped up the acquisition of Bridgewell Agribusiness, a supplier of organic and non-GMO agricultural products, earlier this month. That deal allowed Vireo to expand beyond cannabis into agricultural and food ingredient distribution.

Earlier this year, Vireo completed the acquisition of The Hawthorne Gardening Company from The Scotts Miracle-Gro Company. That transaction added approximately $110 million of combined cash and net working capital. It strengthened Vireo’s balance sheet and provided it with a supply chain platform.

Vireo’s acquisition spree includes the purchase of PharmaCann’s Colorado assets, roughly 17 dispensaries, the acquisition of effective control of Schwazze through its restructuring, the acquisition of Eaze, and prior deals involving Deep Roots Harvest, Proper Brands, and WholesomeCo.

VREOD Price Action

Vireo Growth’s shares traded 1.29% lower at $11.1 per share at the time of writing on Friday.