Medicine Man Technologies, operating as Schwazze, has agreed to terms for a restructuring support agreement (RSA) with an affiliate of Vireo Growth.
The RSA sets forth a plan to restructure the operations and capital structure of the company and its subsidiaries through a series of transactions, which could include the sale of certain assets representing a majority of the total assets of the company and its subsidiaries to a newly formed entity to be majority owned by Vireo. The RSA could also include the liquidation and winding down of the company's remaining operations.
"Today's announcement represents a pivotal milestone in our journey to build a stronger, more agile organization," said Schwazze CEO Forrest Hoffmaster in a statement. "This structure positions us to deliver exceptional value to our customers, employees, and partners. Vireo's support and commitment demonstrate strong confidence in our management team's strategic vision and our ability to capitalize on market consolidation opportunities. We are excited about the path forward and the significant potential this partnership creates."
Vireo earlier this month said it had entered into definitive agreements to acquire approximately 86% of the outstanding senior secured convertible notes of cannabis MSO Schwazze.
The company said it's buying the notes at a "price substantially below par value," for total consideration of approximately $62 million in subordinate voting shares.
