Vireo Growth Inc. is set to acquire some cultivation, manufacturing, and retail operations from The Cannabist Company Holdings Inc., through its subsidiary Vireo Health of Arcadia, LLC. The deal, worth up to $35 million, includes Cannabist operations in Colorado, Illinois, Massachusetts, New Jersey, and West Virginia.
Under the terms of the deal, which still requires regulatory approval, $18.75 million will be payable in cash at closing with an additional $16.25 million in seller notes.
In a statement, John Mazarakis, Vireo CEO, said the deal reflects the company’s “disciplined and strategic approach to industry consolidation” as Vireo continues “building one of the most capital efficient, vertically integrated cannabis platforms in the United States.”
“The acquisition of select Cannabist assets meaningfully expands our operational footprint, strengthens our vertically integrated platform, and adds a highly experienced team along with operations in new markets for Vireo.” — Mazarakis, in a press release
In March, the Cannabist entered into Companies’ Creditors Arrangement Act (CCAA) proceedings in Canada and Chapter 15 bankruptcy proceedings in the U.S. seeking recognition of the CCAA proceeding in Canada, which it was granted. The company also entered into a previously announced strategic review process initiated by a special committee of Cannabist’s board of directors comprised of independent directors, subsequently announcing that it would sell certain assets in Colorado, Illinois, Massachusetts, New Jersey, and West Virginia.
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