Vireo Growth completes $20m PhytoNatural acquisition

Vireo Growth completes $20m PhytoNatural acquisition

Stocks snap two-week win streak as AI-trade bleeds, pushing chips into bear market MINNEAPOLIS - Vireo Growth Inc. (CSE:VREO) (OTCQX:VREOF) completed its acquisition of PhytoNatural, a company holding a non-operational Pennsylvania medical cannabis retail permit, according to a press release statement issued Friday. The transaction was conducted jointly with Vive Penn, LLC, a joint venture between Vireo and Hive Holdings, Inc. The Pennsylvania permit authorizes operation of up to six dispensaries in the state, subject to regulatory approvals.

Total consideration for the acquisition was $20.0 million. The payment structure consists of $8.0 million in cash paid by Vive at closing and approximately $12.0 million through the issuance of approximately 645,161 Vireo subordinate voting shares. The shares, valued at a deemed price of $18.60 per share, will be issued two years following the closing date.

The company’s stock has faced headwinds recently, trading at $9.80 and down 45% year-to-date. Despite near-term pressure, InvestingPro analysis suggests the stock is undervalued relative to its Fair Value, with analysts predicting profitability this year after recent losses. The company maintains a "GOOD" financial health score and posted 251% revenue growth over the last twelve months.

Vireo operates cultivation, manufacturing, retail dispensaries, home delivery, distribution, and agricultural supply businesses across the United States. The company reports operations in 10 states with more than 170 dispensaries nationwide. The acquisition follows a previously announced Securities Purchase Agreement between the parties.

In other recent news, Vireo Growth Inc. has completed its acquisition of Agribusiness Holdings Limited Partnership, which includes its subsidiary Bridgewell Agribusiness LLC. The transaction’s final purchase price was approximately $13.66 million. This figure reflects adjustments from an initial base price of $40 million, accounting for assumed indebtedness and transaction expenses.

As part of the deal, Vireo Growth issued unsecured, subordinated convertible notes to the sellers. These notes are set to convert into an estimated 22,036,528 subordinate voting shares at a deemed price of $0.62 per share on a pre-share consolidation basis, starting on or after the second anniversary of the closing. These developments are part of Vireo Growth’s recent strategic moves.

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