Schwazze Reaches Agreement to Restructure its Balance Sheet and Portfolio of Assets

Core Viewpoint - Schwazze has entered into a Restructuring Support Agreement (RSA) with Vireo Growth Inc. to restructure its operations and capital structure, which includes the sale of major assets and winding down remaining operations [1][2]. Group 1: Restructuring Plan - The RSA outlines a plan to restructure the company through a series of transactions, including the sale of assets to a newly-formed entity (NewCo) that will be majority-owned by Vireo [2]. - The transactions are expected to lead to a new, growth-oriented company with reduced debt, improved liquidity, and a streamlined asset portfolio [2]. Group 2: Asset Sale and Financing - Under the RSA, a credit bid will be submitted at an auction for the Asset Sale, and if successful, an asset purchase agreement will be established with NewCo [3]. - NewCo is expected to receive approximately $62 million in financing to refinance certain seller notes, cover transaction expenses, and provide working capital [3]. Group 3: Wind Down Process - Any remaining assets not purchased in the Asset Sale will undergo a wind down, with remaining liabilities and equity interests receiving net proceeds according to their legal priorities [4]. Group 4: Management Perspective - The CEO of Schwazze emphasized that this restructuring is a pivotal milestone aimed at building a stronger organization and reflects confidence in the management team's strategic vision [5].