Vireo Growth Pushes U.S. Expansion Forward With Pennsylvania Dispensary Deal Worth $20M

Vireo Growth Inc. (CSE: VREO) (OTCQX: VREOF) is entering Pennsylvania via a new acquisition deal.

What Happened

The company announced on Thursday that it’s acquiring FarmX, LLC, doing business as PhytoNatural. The acquisition is being completed through Vive Penn, LLC, a joint venture between Vireo and Hive Holdings.

Why It Matters

The deal is valued at roughly $20 million. The sum includes $8 million in cash at closing and $12 million in Vireo shares to be issued two years after closing

The access to a retail permit will allow Vireo up to six medical cannabis dispensaries in The Keystone State, subject to regulatory approval. The Pennsylvania medical cannabis market boasts nearly 450,000 registered patients, John Mazarakis, the company’s CEO, said in a press release.

What’s Next

The deal is to close once all regulatory approvals and customary closing conditions are met.

“We are evaluating sites for the Vive retail stores, and we believe we are well-positioned to build a meaningful presence in one of the country’s leading limited-license cannabis markets,” Mazarakis continued.

The Background

The latest move continues Vireo’s acquisition spree that’s part of its expansion strategy. The goal is to build scale across key cannabis markets nationwide and in adjacent businesses.

In June, Vireo wrapped up the previously announced acquisition of an indirect 49% equity interest in HA-MD, LLC, the parent company of Chesapeake Integrated Health Institute and Maryland Alternative Relief, and also announced the acquisition of C21 Investments in an all-stock transaction.

In addition to 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.