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Vireo Growth Inc. (VREOF) has successfully closed two strategic acquisitions: WholesomeCo Cannabis, a dominant player in Utah’s medical market, and the Arches proprietary technology platform for a total of $69.8 million. The deal was executed through 134.2 million Subordinate Voting Shares at $0.52 per share.
The Wholesome acquisition, valued at 4.175x its 2024 Reference EBITDA of $16 million, includes clawback provisions tied to performance milestones through December 2026. Shareholders agreed to a 33-month lock-up period. The company also expects to close pending mergers in Missouri and Nevada in Q2 2025.
Vireo Growth Inc. (VREOF) ha completato con successo due acquisizioni strategiche: WholesomeCo Cannabis, un attore dominante nel mercato medico dello Utah, e la piattaforma tecnologica proprietaria Arches, per un totale di 69,8 milioni di dollari. L’operazione è stata effettuata tramite 134,2 milioni di azioni subordinate con diritto di voto a 0,52 dollari per azione.
L’acquisizione di Wholesome, valutata 4,175 volte l’EBITDA di riferimento 2024 pari a 16 milioni di dollari, include clausole di recupero legate a obiettivi di performance fino a dicembre 2026. Gli azionisti hanno accettato un periodo di lock-up di 33 mesi. L’azienda prevede inoltre di concludere fusioni in sospeso in Missouri e Nevada nel secondo trimestre del 2025.
Vireo Growth Inc. (VREOF) ha cerrado con éxito dos adquisiciones estratégicas: WholesomeCo Cannabis, un actor dominante en el mercado médico de Utah, y la plataforma tecnológica propietaria Arches, por un total de 69,8 millones de dólares. La operación se realizó mediante 134,2 millones de acciones subordinadas con derecho a voto a 0,52 dólares por acción.
La adquisición de Wholesome, valorada en 4,175 veces su EBITDA de referencia 2024 de 16 millones de dólares, incluye cláusulas de recuperación vinculadas a hitos de rendimiento hasta diciembre de 2026. Los accionistas acordaron un período de bloqueo de 33 meses. La compañía también espera cerrar fusiones pendientes en Missouri y Nevada en el segundo trimestre de 2025.
Vireo Growth Inc. (VREOF)는 유타 주 의료 시장의 선도 기업인 WholesomeCo Cannabis와 Arches 독점 기술 플랫폼 두 건의 전략적 인수를 총 6,980만 달러에 성공적으로 마무리했습니다. 이번 거래는 주당 0.52달러에 1억 3,420만 주의 보통주 하위 의결권 주식을 통해 이루어졌습니다.
Wholesome 인수는 2024년 기준 EBITDA 1,600만 달러의 4.175배로 평가되었으며, 2026년 12월까지 성과 목표에 따른 클로백 조항이 포함되어 있습니다. 주주들은 33개월의 락업 기간에 동의했습니다. 회사는 또한 2025년 2분기에 미주리와 네바다에서 진행 중인 합병을 마무리할 것으로 기대하고 있습니다.
Vireo Growth Inc. (VREOF) a finalisé avec succès deux acquisitions stratégiques : WholesomeCo Cannabis, un acteur dominant sur le marché médical de l’Utah, et la plateforme technologique propriétaire Arches, pour un total de 69,8 millions de dollars. L’opération a été réalisée par l’émission de 134,2 millions d’actions subordonnées avec droit de vote à 0,52 dollar par action.
L’acquisition de Wholesome, valorisée à 4,175 fois son EBITDA de référence 2024 de 16 millions de dollars, comprend des clauses de récupération liées à des objectifs de performance jusqu’en décembre 2026. Les actionnaires ont accepté une période de blocage de 33 mois. La société prévoit également de finaliser des fusions en attente dans le Missouri et le Nevada au deuxième trimestre 2025.
Vireo Growth Inc. (VREOF) hat erfolgreich zwei strategische Akquisitionen abgeschlossen: WholesomeCo Cannabis, ein dominanter Akteur im medizinischen Markt von Utah, und die proprietäre Technologieplattform Arches für insgesamt 69,8 Millionen US-Dollar. Der Deal wurde durch 134,2 Millionen nachrangige stimmberechtigte Aktien zu je 0,52 US-Dollar durchgeführt.
Die Übernahme von Wholesome, bewertet mit dem 4,175-fachen des Referenz-EBITDA 2024 von 16 Millionen US-Dollar, beinhaltet Rückforderungsbestimmungen, die an Leistungsmeilensteine bis Dezember 2026 gebunden sind. Die Aktionäre stimmten einer 33-monatigen Sperrfrist zu. Das Unternehmen erwartet außerdem, ausstehende Fusionen in Missouri und Nevada im zweiten Quartal 2025 abzuschließen.
Positive
Acquisition of WholesomeCo strengthens Vireo’s presence in Utah’s medical cannabis market
Purchase price represents reasonable multiple of 4.175x Reference EBITDA ($16M)
Integration of Arches technology platform provides competitive advantages in digital marketing and consumer loyalty
33-month share lock-up period shows selling shareholders’ long-term commitment
Additional merger transactions in Missouri and Nevada expected to close in Q2 2025
Negative
Significant share dilution with issuance of 134.2 million new shares
Performance-based clawback provisions indicate execution risks
WholesomeCo operates only one physical dispensary, limiting physical presence
05/12/2025 – 04:30 PM
– Acquisitions strengthen profitability and competitive position with proprietary technology platform –
– Missouri and Nevada transactions remain on track to close during the second quarter of 2025 –
MINNEAPOLIS, May 12, 2025 (GLOBE NEWSWIRE) — Vireo Growth Inc. (“Vireo” or the “Company”) (CSE: VREO; OTCQX: VREOF), today announced that it has closed its previously-announced transactions to acquire Utah-based WholesomeCo Cannabis (“Wholesome”) and the Arches proprietary technology and analytics platform. Wholesome is a dominant player in the Utah medical market, fueled by a large delivery operation with one single dispensary. The company initially developed the Arches proprietary technology stack in-house, which has developed sophisticated digital marketing and consumer loyalty capabilities.
Total consideration for the transactions was $69.8 million, paid in the form of 134.2 million Subordinate Voting Shares of Vireo at a reference price per share of $0.52. The purchase price of the Wholesome transaction represents a multiple of 4.175x 2024 “Reference EBITDA” of $16 million. The Wholesome transaction is subject to clawback provisions if they don’t meet performance milestones as of December 31, 2026. The selling shareholders all agreed to voluntary share lock-up provisions, with tranches of shares unlocking over a 33-month period.
The acquisitions of Wholesome and Arches are expected to further strengthen the Company’s profitability profile and provide a unique opportunity to build competitive advantages in other markets with a proprietary technology and analytics platform. Vireo management continues to expect that its other pending merger transactions will close during the second quarter.
About Vireo Growth Inc.
Vireo was founded as a pioneer in medical cannabis in 2014 and we are fueled by an entrepreneurial drive that sustains our ongoing commitment to serve and delight our key stakeholders, most notably our customers, our employees, our shareholders, our industry collaborators, and the communities in which we live and operate. We work every day to get better and our team prioritizes 1) empowering and supporting strong local market leaders and 2) strategic, prudent capital and human resource allocation. For more information, please visit www.vireogrowth.com.
Contact Information
Joe Duxbury
Chief Accounting Officer
investor@vireogrowth.com
(612) 314-8995
Forward-Looking Statement Disclosure
This press release contains “forward-looking information” within the meaning of applicable United States and Canadian securities legislation. Forward-looking information contained in this press release may be identified by the use of words such as “should,” “believe,” “estimate,” “would,” “looking forward,” “may,” “continue,” “expect,” “expected,” “will,” “likely,” “subject to,” “transformation,” and “pending,” variations of such words and phrases, or any statements or clauses containing verbs in any future tense and includes, but may not be limited to, statements regarding the Merger Transactions, including the timeline for the closing of the Merger Transactions; shareholder approval of the Merger Transactions; and the regulatory approvals required for the Merger Transactions. These statements should not be read as guarantees of future performance or results. Forward-looking information includes both known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company or its subsidiaries to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements or information contained in this press release. Forward-looking information is based upon a number of estimates and assumptions of management, believed but not certain to be reasonable, in light of management’s experience and perception of trends, current conditions, and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment, and the availability of licenses, approvals and permits.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, the reader should not place undue reliance on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to: risks related to the shareholder approval of the Merger Transactions; risks related to regulatory approval of the Merger Transactions; and risk factors set out in the Company’s Form 10-K for the year ended December 31, 2024 and the Company’s information statement regarding the Merger Transactions, both of which are available on EDGAR with the U.S. Securities and Exchange Commission and filed with the Canadian securities regulators and available under the Company’s profile on SEDAR+ at www.sedarplus.ca. The statements in this press release are made as of the date of this release. Except as required by law, we undertake no obligation to update any forward-looking statements or forward-looking information to reflect events or circumstances after the date of such statements.
How much did Vireo Growth (VREOF) pay for WholesomeCo Cannabis and Arches acquisitions?
Vireo Growth paid $69.8 million through 134.2 million Subordinate Voting Shares at $0.52 per share for both WholesomeCo Cannabis and the Arches technology platform.
What is the EBITDA multiple for the WholesomeCo acquisition by Vireo Growth?
The WholesomeCo acquisition was valued at 4.175x its 2024 Reference EBITDA of $16 million.
What are the lock-up terms for WholesomeCo shareholders in the Vireo Growth acquisition?
The selling shareholders agreed to voluntary share lock-up provisions with shares unlocking in tranches over a 33-month period.
What other acquisitions is Vireo Growth (VREOF) planning to complete in 2025?
Vireo Growth expects to close pending merger transactions in Missouri and Nevada during the second quarter of 2025.
What happens if WholesomeCo doesn’t meet performance milestones under Vireo Growth?
The transaction includes clawback provisions if WholesomeCo fails to meet performance milestones as of December 31, 2026.
“}]] Vireo Growth Inc. (VREOF) has successfully closed two strategic acquisitions: WholesomeCo Cannabis, a dominant player in Utah’s medical market, and the Arches proprietary technology platform for a total of $69.8 million. The deal was executed through 134.2 million Subordinate Voting Shares at $0.52 per share.The Wholesome acquisition, valued at 4.175x its 2024 Reference EBITDA of $16 million, includes clawback provisions tied to performance milestones through December 2026. Shareholders agreed to a 33-month lock-up period. The company also expects to close pending mergers in Missouri and Nevada in Q2 2025. Read More
