Vireo Growth Inc. (CSE: VREO, OTCQX: VREOF), a cannabis company expanding its multi-state operations, has reached significant milestones in its planned merger transactions. The company filed its Definitive Information Circular on March 21, 2025, detailing proforma financial information for the combined entity and audited financial data for the merger targets.
The Minneapolis-based firm has also secured shareholder approval for the acquisitions, which are expected to close in the second quarter of 2025. These developments mark crucial steps in Vireo’s strategy to broaden its footprint across multiple states.
Vireo is set to issue a substantial number of Subordinate Voting Shares (SV Shares) as part of the merger consideration. The volume of new shares is significant, projected to exceed 100% of the company’s current outstanding voting equity.
To expedite the process, Vireo has utilized a written consent mechanism, obtaining approval from shareholders holding over 50% of the outstanding voting equity shares. This approach aligns with the CSE’s Policy 4.6(1)(b), which allows for shareholder approval through written consent in lieu of a formal meeting.
While shareholder approval has been secured, the merger transactions still require final approval from the CSE. Vireo has already obtained necessary regulatory approvals for its Utah transactions, which include the acquisition of Wholesome Cannabis and the Arches technology platform.
These mergers are part of Vireo’s broader expansion strategy announced in December 2024. The company had previously signed agreements to acquire four single-state operators for approximately $397 million in all-stock transactions. The deals include Proper Brands in Missouri, Deep Roots Harvest in Nevada, WholesomeCo Cannabis in Utah, and a binding memorandum of understanding to acquire The Flowery in Florida.
Upon completion, these acquisitions will expand Vireo’s operations to seven states, encompassing about 1,043,500 square feet of cultivation and manufacturing space across nine facilities, and 48 retail dispensaries. The merged entity is expected to generate proforma revenue of around $394 million and EBITDA of $94 million for the calendar year 2024.
Vireo’s expansion comes amid a period of consolidation in the cannabis industry, as companies seek to build scale and improve profitability. The company’s focus on strategic acquisitions and local market leadership positions it to capitalize on the growing legal cannabis market in the United States.
