Vireo Growth closes acquisition of Schwazze

Executive Summary

• Vireo Growth Inc. has closed its acquisition of Schwazze assets, adding 45 dispensaries (24 in Colorado, 21 in New Mexico) and two manufacturing facilities to its portfolio.
• The transaction was executed at an assumed share price of $0.661 per share, implying a valuation of less than four‑times pro forma EBITDA.
• Justin Dye has been appointed Chairman and Forrest Hoffmaster as CEO of Vireo’s Colorado and New Mexico businesses.

Key Details

• Acquired Assets: 24 dispensaries in Colorado, 21 dispensaries in New Mexico, plus one manufacturing facility in each state.
• Purchase Price: Assumed share price of $0.661 per share (no cash consideration disclosed).
• Valuation Metric: Implied valuation under 4× pro forma EBITDA for the combined Schwazze assets.
• Leadership Appointments:
• Justin Dye – Chairman of Vireo’s Colorado & New Mexico business.
• Forrest Hoffmaster – Chief Executive Officer of Vireo’s Colorado & New Mexico business.
• Strategic Rationale: Expands Vireo’s footprint in key markets, leverages established retail operations, and supports a capital‑efficient growth strategy.
• Future Outlook: The acquisition is positioned as the first step toward building a scaled retail presence that could exceed 75 dispensaries across Colorado and New Mexico, subject to market conditions, regulatory approvals, and capital availability.

Notable Quotes

“We are pleased to announce the closing of the acquisition of the Schwazze assets… enabling Vireo to expand its presence in key markets… at an implied estimated valuation of under four‑times pro forma EBITDA.” – John Mazarakis, CEO, Vireo Growth Inc.

“This transaction marks the beginning of a new chapter for the Schwazze team… we remain committed to serving our customers in Colorado and New Mexico with high‑quality products and experiences.” – Forrest Hoffmaster, CEO, Vireo’s Colorado & New Mexico businesses