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Vireo Growth Inc. Announces Closing of WholesomeCo Cannabis & Arches Merger Transactions
Globenewswire· 2025-05-12 20:30
Core Insights - Vireo Growth Inc. has successfully completed the acquisition of WholesomeCo Cannabis and the Arches proprietary technology platform, enhancing its profitability and competitive position in the market [1][3] - The total consideration for the acquisitions amounted to $69.8 million, paid in 134.2 million Subordinate Voting Shares at a reference price of $0.52 per share [2] - The acquisition of Wholesome is based on a multiple of 4.175x the projected 2024 "Reference EBITDA" of $16 million, with performance milestones set for December 31, 2026 [2] Financial Details - The purchase price for Wholesome represents a multiple of 4.175x the expected EBITDA, indicating a strategic valuation approach [2] - Shareholders involved in the transaction have agreed to voluntary share lock-up provisions, with shares unlocking over a 33-month period [2] Strategic Implications - The acquisitions are expected to bolster Vireo's profitability profile and create competitive advantages through the proprietary technology and analytics platform [3] - The company anticipates that other pending merger transactions will also close in the second quarter of 2025, indicating ongoing growth and expansion efforts [3]