Vireo Growth Inc. Announces Closing of Oversubscribed US$81 Million Equity Securities Offering
Vireo Growth has successfully closed an oversubscribed private placement offering, raising US$81 million through the issuance of 129,536,874 Subordinate Voting Shares at US$0.625 per share. The offering price represents a 16.8% premium to the closing share price on OTCQX as of December 27, 2024.
The company plans to utilize the net proceeds for business development, including organic and acquisitive growth investments, working capital, and general corporate purposes. The offering, initially planned for US$75 million, exceeded expectations with oversubscribed demand. Lineage Merchant Partners acted as placement agent, with securities placed through GT Securities.
Vireo Growth ha chiuso con successo un'offerta di private placement sovrascritta, raccogliendo 81 milioni di dollari statunitensi attraverso l'emissione di 129.536.874 azioni di voto subordinate a 0,625 dollari statunitensi per azione. Il prezzo dell'offerta rappresenta un premio del 16,8% rispetto al prezzo di chiusura delle azioni su OTCQX al 27 dicembre 2024.
L'azienda prevede di utilizzare i proventi netti per sviluppo aziendale, inclusi investimenti in crescita organica e acquisitiva, capitale circolante e scopi aziendali generali. L'offerta, inizialmente pianificata per 75 milioni di dollari statunitensi, ha superato le aspettative con una domanda sovrascritta. Lineage Merchant Partners ha agito come agente di collocamento, con titoli collocati attraverso GT Securities.
Vireo Growth ha cerrado con éxito una oferta privada de colocación que fue sobredemandada, recaudando 81 millones de dólares estadounidenses a través de la emisión de 129.536.874 Acciones de Voto Subordinado a 0,625 dólares estadounidenses por acción. El precio de la oferta representa una prima del 16,8% respecto al precio de cierre de las acciones en OTCQX al 27 de diciembre de 2024.
La empresa planea utilizar los ingresos netos para desarrollo empresarial, incluidos inversiones en crecimiento orgánico y adquisitivo, capital de trabajo y propósitos generales corporativos. La oferta, inicialmente planificada en 75 millones de dólares estadounidenses, superó las expectativas con una demanda sobredimensionada. Lineage Merchant Partners actuó como agente de colocación, con valores colocados a través de GT Securities.
비레오 성장은 성공적으로 초과 청약된 사모 배정 공모를 마감했으며, 8,100만 달러를 모금했습니다. 이는 1주당 0.625달러의 조건으로 129,536,874주의 보조 의결권 주식을 발행한 것입니다. 공모가는 2024년 12월 27일 OTCQX에서 종가에 비해 16.8%의 프리미엄을 나타냅니다.
회사는 비즈니스 개발을 위한 순수익을 활용할 계획이며, 여기에는 유기적 및 인수 성장 투자, 운영 자본, 일반 회사 목적이 포함됩니다. 원래 7,500만 달러로 계획된 공모는 초과 청약 수요로 기대를 초과했습니다. Lineage Merchant Partners는 배정 에이전트로 활동했으며, GT 증권을 통해 증권이 배정되었습니다.
Vireo Growth a réussi à clore une offre de placement privé sursouscrite, levant 81 millions de dollars américains par l'émission de 129.536.874 Actions de Vote Subordonné à 0,625 dollars américains par action. Le prix de l'offre représente une prime de 16,8 % par rapport au prix de clôture de l'action sur OTCQX au 27 décembre 2024.
La société prévoit d'utiliser les produits nets pour le développement commercial, y compris des investissements dans la croissance organique et par acquisitions, le fonds de roulement et les objectifs généraux de l'entreprise. L'offre, initialement prévue pour 75 millions de dollars américains, a dépassé les attentes avec une demande sursouscrite. Lineage Merchant Partners a agi en tant qu'agent de placement, avec des titres placés par le biais de GT Securities.
Vireo Growth hat erfolgreich eine überzeichnete Privatplatzierung abgeschlossen und 81 Millionen US-Dollar durch die Ausgabe von 129.536.874 nachrangigen stimmberechtigten Aktien zu 0,625 US-Dollar pro Aktie eingenommen. Der Angebotspreis stellt eine Prämie von 16,8 % zum Schlusskurs der Aktien am OTCQX vom 27. Dezember 2024 dar.
Das Unternehmen plant, die Nettomittel für Geschäftsentwicklung zu verwenden, einschließlich organischer und akquisitorischer Wachstumsinvestitionen, Betriebskapital und allgemeine Unternehmenszwecke. Das ursprünglich auf 75 Millionen US-Dollar geplante Angebot übertraf die Erwartungen mit überzeichneter Nachfrage. Lineage Merchant Partners fungierte als Platzierungsagent, wobei Wertpapiere über GT Securities platziert wurden.
- Raised US$81 million, exceeding initial US$75 million target
- Shares priced at 16.8% premium to market price
- Strengthened balance sheet for growth opportunities
- Potential dilution for existing shareholders due to large share issuance
– Oversubscribed equity raise at US
– Financing enables Vireo to fund investments in additional organic and acquisitive growth opportunities –
MINNEAPOLIS, Dec. 31, 2024 (GLOBE NEWSWIRE) -- Vireo Growth Inc. ("Vireo" or the "Company") (CSE: VREO; OTCQX: VREOF), today announced that on December 30, 2024, it closed the previously-announced private placement offering of Subordinate Voting Shares of the Company (the "Offering"). Investors who participated in the Offering subscribed for 129,536,874 Subordinate Voting Shares at a share price of US
Chief Executive Officer John Mazarakis commented, “We are pleased to announce this closing, which marks the beginning of a new chapter for Vireo. On behalf of our entire management team and board, I want to thank our current investors for their ongoing support and extend a warm welcome to our new investors who participated in the offering and share our vision for Vireo’s future.”
The Subordinate Voting Shares issued in the financing were issued in reliance upon exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and applicable Canadian and U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Lineage Merchant Partners, LLC ("Lineage") acted as placement agent for the financing. Securities placed via Lineage were offered through GT Securities, Inc. (member FINRA, SIPC).
Chicago Atlantic formed a special purpose vehicle (“SPV”) in order to pool investor capital for the purpose of subscribing for a portion of the Subordinate Voting Shares issued under the equity securities offering. The issuances of shares to such SVP will be considered a "related party transaction" for the purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61- 101"), as Chicago Atlantic is a "related party" to Vireo as defined in MI 61-101. The transaction will be exempt from the formal valuation and minority shareholder approval requirements available under MI 61-101 on the basis that neither the fair market value of the securities to be issued, nor the fair market value of the consideration for the securities to be issued, insofar as it involves related parties, exceeds
About Vireo
Vireo was founded as a pioneer in medical cannabis in 2014 and sustained with an entrepreneurial drive that fuels 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
Investor Inquiries:
Joe Duxbury
Chief Accounting Officer
investor@vireogrowth.com
(612) 314-8995
Media Inquiries:
Amanda Hutcheson
Senior Manager, Communications
amandahutcheson@vireogrowth.com
(919) 815-1476
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. These include statements regarding the use of proceeds of the Offering. 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 timing and content of adult-use legislation in markets where the Company currently operates; current and future market conditions, including the market price of the Subordinate Voting Shares of the Company; risks related to epidemics and pandemics; federal, state, local, and foreign government laws, rules, and regulations, including federal and state laws and regulations in the United States relating to cannabis operations in the United States and any changes to such laws or regulations; operational, regulatory and other risks; execution of business strategy; compliance with any conditions to the completion of the proposed merger transactions; management of growth; difficulties inherent in forecasting future events; conflicts of interest; risks inherent in an agricultural business; risks inherent in a manufacturing business; liquidity and the ability of the Company to raise additional financing to continue as a going concern; the Company's ability to meet the demand for flower in Minnesota; risk of failure in the lawsuit with Verano and the cost of that litigation; our ability to dispose of our assets held for sale at an acceptable price or at all; and risk factors set out in the Company's Form 10-K for the year ended December 31, 2023, which is 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.
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