Goodness Growth Holdings to Complete Non-Brokered Private Placement to Support the Relocation of a Minnesota Dispensary

Rhea-AI Summary

Goodness Growth Holdings (CSE: GDNS; OTCQX: GDNSF) announced a non-brokered private placement investment of its subordinate voting shares, aiming to secure approximately US $700,000. The funds will support the relocation of a retail dispensary in Minnesota. The shares will be priced at a 30-day VWAP as of the day before closing and are subject to a statutory hold period of four months plus one day. The transaction is expected to finalize within the next five business days. Proceeds will assist in a mortgage note for the dispensary's relocation.

Positive

• Goodness Growth Holdings expects to raise approximately US $700,000.
• The private placement supports the strategic relocation of a retail dispensary in Minnesota.
• Shares are priced at a 30-day volume weighted average price (VWAP), potentially reducing volatility.
• Proceeds will be utilized in connection with a mortgage note, solidifying financial backing for the relocation.

Negative

• The subordinate voting shares issued will be subject to a statutory hold period of four months plus one day, which may limit immediate liquidity.
• The fund-raising method might lead to shareholder dilution.

MINNEAPOLIS, May 30, 2024 (GLOBE NEWSWIRE) -- Goodness Growth Holdings, Inc. ("Goodness Growth" or the "Company") (CSE: GDNS; OTCQX: GDNSF), a cannabis company committed to providing safe access, quality products and great value to its customers, today announced that it plans to complete a non-brokered private placement investment of its subordinate voting shares to help fund the relocation of one of its retail dispensaries in Minnesota.

The Company anticipates an aggregate subscription amount of approximately US $700,000 in relation to this private placement, priced at a 30-day volume weighted average price (VWAP) as of the day before closing. The Company expects that this transaction will be completed within the next five business days. Proceeds from the transaction will be utilized in connection with a mortgage note which will help secure the relocation of one of its retail dispensaries in Minnesota.

All of the subordinate voting shares issued in connection with this private placement will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States. The Canadian Securities Exchange ("CSE") has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

About Vireo & Goodness Growth

Vireo (Goodness Growth) 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.vireohealth.com.

Goodness Growth Holdings Contact Information

Investor Inquiries:
Sam Gibbons
Investor Relations
investor@vireohealth.com
(612) 314-8995

Media Inquiries:
Amanda Hutcheson
Senior Manager, Communications
amandahutcheson@goodnessgrowth.com   
(919) 815-1476

FAQ

What is Goodness Growth Holding's stock symbol?

Goodness Growth Holdings is listed under the stock symbols CSE: GDNS and OTCQX: GDNSF.

How much does Goodness Growth Holdings plan to raise through the private placement?

Goodness Growth Holdings plans to raise approximately US $700,000.

What will the funds from the private placement be used for?

The funds will be used to support the relocation of a retail dispensary in Minnesota.

When is the transaction expected to complete?

The transaction is expected to complete within the next five business days.

What is the pricing basis for the shares in the private placement?

The shares are priced at a 30-day volume weighted average price (VWAP) as of the day before closing.

What is the statutory hold period for the shares issued in the private placement?

The shares will be subject to a statutory hold period of four months plus one day.