Vireo Growth said it entered an joint agreement with Vive Penn to acquire FarmX, which owns a non-operational retail permit that would, subject to regulatory approval, allow Vive to open up to six retail stores in Pennsylvania.
Total consideration for the acquired licenses is approximately $20 million, with $8 million payable by Vive in cash at closing and the remaining $12 million payable through the issuance of approximately 645,161 subordinate voting shares of Vireo, to be issued two years following the closing date.
“Pennsylvania is an attractive medical market, approaching approximately 450,000 registered patients in the fifth most populous state in the country,” said Vireo CEO John Mazarakis in a statement. “This transaction, in partnership with Vive, provides Vireo with an entry into Pennsylvania through the ability to operate up to six medical dispensaries. We are evaluating sites for the Vive retail stores, and we believe we are well-positioned to build a meaningful presence in one of the country's leading limited-license cannabis markets.”
The PhytoNatural Transaction is expected to close two business days following the date the parties satisfy all conditions precedent to the agreement, including the receipt of all required regulatory approvals and the satisfaction of certain other closing conditions customary in transactions of this nature.
In April, Vireo closed its deal to acquire cannabis cultivation unit Hawthorne from Scotts Miracle-Gro after recently buying retail assets from Eaze, PharmaCann and Schwazze. Those transactions expanded Vireo’s retail presence in Colorado to 55 stores.
Vireo also recently announced an agreement with Glass House, one of the largest cannabis growers in the U.S., to combine their California retail operations into a new joint venture.
Glass House currently operates 11 California retail locations, and Vireo operates 12 dispensaries and home delivery operations recently acquired from Eaze. The combined network will be supported by a preferential supply agreement with Glass House. Cory Azzalino, Vireo's president of California and former CEO of Eaze, has been tapped to run the joint venture, where he will oversee operations and lead the platform's retail acquisition and expansion strategy.
Vireo has also recently announced deals for Fluent and Bridgewell.
