Mr. John Mazarakis reports
VIREO GROWTH INC. ANNOUNCES CLOSING OF OVERSUBSCRIBED US$81 MILLION EQUITY SECURITIES OFFERING
On Dec. 30, 2024, Vireo Growth Inc. closed the previously announced private placement offering of subordinate voting shares of the company. Investors who participated in the offering subscribed for 129,536,874 subordinate voting shares at a share price of 62.5 U.S. cents, a 16.8-per-cent premium to the closing share price on the OTCQX on Dec. 27, 2024. The offering raised gross proceeds of approximately $81-million (U.S.), which includes a portion of the oversubscribed demand from the initially planned $75-million (U.S.) equity raise. The company intends to use the net proceeds from the offering for business development, including organic and acquisitive growth investments, as well as working capital and general corporate purposes.
Chief executive officer John Mazarakis commented: "We are pleased to announce this closing, which marks the beginning of a new chapter for Vireo. On behalf of our entire management team and board, I want to thank our current investors for their ongoing support and extend a warm welcome to our new investors who participated in the offering and share our vision for Vireo's future."
The subordinate voting shares issued in the financing were issued in reliance upon exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and applicable Canadian and U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Lineage Merchant Partners LLC acted as placement agent for the financing. Securities placed through Lineage were offered through GT Securities Inc. (a member of FINRA (Financial Industry Regulatory Authority) and SIPC (Securities Investor Protection Corp.)).
Chicago Atlantic formed a special-purpose vehicle (SPV) in order to pool investor capital for the purpose of subscribing for a portion of the subordinate voting shares issued under the equity securities offering. The issuances of shares to such SVP will be considered a related party transaction for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, as Chicago Atlantic is a related party to Vireo as defined in MI 61-101. The transaction will be exempt from the formal valuation and minority shareholder approval requirements available under MI 61-101 on the basis that neither the fair market value of the securities to be issued nor the fair market value of the consideration for the securities to be issued, insofar as it involves related parties, exceeds 25 per cent of the market capitalization of the company.
About Vireo Growth Inc.
Vireo was founded as a pioneer in medical cannabis in 2014 and sustained with an entrepreneurial drive that fuels the company's continuing commitment to serve and delight its key stakeholders -- most notably its customers, its employees, its shareholders, its industry collaborators, and the communities in which the company lives and operates. 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.
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