Vireo Growth today announced the closing of its previously disclosed acquisition of certain assets of U.S. multi-state cannabis operator Medicine Man Technologies, which does business as Schwazze.
Vireo acquires 24 dispensaries in Colorado, 21 dispensaries in New Mexico and one manufacturing facility in each of Colorado and New Mexico. Schwazze CEO Justin Dye will become chairman of Vireo’s Colorado and New Mexico business, and CFO Forrest Hoffmaster was announced as CEO of Vireo’s Colorado and New Mexico businesses.
"This transaction represents a meaningful step in the continued execution of our disciplined growth strategy, enabling Vireo to expand its presence in key markets through the acquisition of established retail operations at an implied estimated valuation of under 4x pro forma EBITDA. We believe this attractive entry point reflects current market conditions and underscores our focus on capital-efficient growth," said Vireo CEO John Mazarakis in a statement. "This acquisition represents an initial step toward a broader strategy to build a scaled retail presence in Colorado and New Mexico, which could grow to over 75 dispensaries over time, subject to market conditions, regulatory approvals, and capital availability.”
