Vireo Growth Inc. has completed its acquisition of all issued and outstanding limited liability company membership interests of FarmX, LLC d/b/a PhytoNatural. The transaction, valued at $20.0 million, was executed jointly with Vive Penn, LLC, a joint venture between Vireo and Hive Holdings, Inc. The acquisition includes a non-operational Pennsylvania medical cannabis retail permit that, subject to regulatory approvals, authorizes the operation of up to six dispensaries in the Commonwealth.

Transaction Consideration

The total consideration of $20.0 million comprised $8.0 million paid in cash at closing and approximately $12.0 million payable through the issuance of shares. Vireo will issue approximately 645,161 subordinate voting shares at a deemed issue price of $18.60 per share. These shares are scheduled for issuance two years following the closing date, in accordance with the terms of the Securities Purchase Agreement.

Operational Details

PhytoNatural holds a permit that expands Vireo's footprint in the Pennsylvania market. The permit allows for the operation of up to six dispensaries, subject to the receipt of applicable regulatory approvals. Vireo operates cultivation, manufacturing, retail dispensaries, and distribution businesses across 10 states with more than 170 dispensaries nationwide.