Vireo Growth Inc. Announces Closing of Proper Brands Acquisition in Missouri

Core Insights - Vireo Growth Inc. has successfully completed the acquisition of Proper Brands, a significant player in Missouri's recreational cannabis market, through its subsidiaries [1][2] - The total consideration for the acquisition was $102 million, paid in 196.2 million Subordinate Voting Shares at a reference price of $0.52 per share, reflecting a multiple of 4.175x the 2024 "Closing EBITDA" of $31 million [3] Company Overview - Proper Brands, founded in 2022, operates 11 retail dispensaries in Missouri, primarily in the St. Louis area, and has a cultivation and manufacturing facility exceeding 100,000 square feet [2] - The company is implementing the Arches technology platform to enhance its home delivery business [2] Transaction Details - The acquisition includes clawback provisions if the 2026 EBITDA falls below the Closing EBITDA as of December 31, 2026 [3] - The shares issued in the transaction are subject to lock-up provisions, with shares unlocking over a 33-month period [3]