Vireo Growth Inc. Enters California and Florida and Strengthens Delivery Platforms with Acquisition of Eaze Inc.

Core Viewpoint - Vireo Growth Inc. has announced a definitive agreement to acquire Eaze Inc., expanding its operations into California and Florida, two of the largest cannabis markets in the U.S. [1][2] Group 1: Transaction Details - The acquisition will add 14 dispensaries in Colorado, increasing Vireo's total to 55 stores in the state [2] - Eaze operates 65 retail locations and has completed over 12 million deliveries, enhancing Vireo's delivery capabilities [1][2] - The transaction is structured as a merger, with a total consideration of approximately $47 million, payable through the issuance of about 84 million subordinate voting shares at a deemed price of $0.56 per share [3] Group 2: Market Expansion - Post-acquisition, Vireo's portfolio will cover 10 states, with a total of 166 active retail dispensaries and around 800,000 square feet of cultivation and production space [1][2] - Eaze is the sixth largest retailer in Florida, with 39 active stores and approximately 64,000 square feet of cultivation canopy [2] Group 3: Future Considerations - Eaze may be entitled to earn-out consideration based on adjusted EBITDA as of December 31, 2026, calculated at 3.84 times adjusted EBITDA [4] - The sellers of Eaze have entered into share lock-up agreements, restricting share transfers until March 1, 2028, with a gradual release of shares [5] Group 4: Leadership Commentary - Vireo's CEO expressed excitement about the acquisition, highlighting the immediate scale it provides in major cannabis markets [6] - Eaze's CEO noted that joining Vireo represents a significant opportunity to enhance retail and delivery experiences across their markets [6]