Vireo Growth Inc. plans to acquire approximately $2.6 million in senior secured convertible notes from Schwazze for about $1.6 million, significantly increasing its stake in the cannabis industry.

Target Information

Vireo Growth Inc. (CSE: VREO; OTCQX: VREOF) is poised to expand its holdings by acquiring additional outstanding senior secured convertible notes (the "Notes") from Medicine Man Technologies Inc., known as Schwazze. With a total outstanding principal and accrued interest of approximately $2.6 million, Vireo plans to purchase these Notes for around $1.6 million, which will be settled in subordinate voting shares at a price of $0.54 per share. Upon completion of this transaction, expected to close within the month, Vireo will have secured approximately 89% of Schwazze's outstanding senior secured convertible notes.

The acquisition is subject to customary conditions, including relevant approvals, and the share consideration will adhere to the standard resale restrictions set by Canadian securities law. This strategic move aligns with Vireo's objective to solidify its presence and increase control over significant financial instruments in the cannabis sector.

Industry Overview

The cannabis industry in Canada has seen exponential growth, particularly with the legalization of recreational cannabis use in October 2018. This shift has ushered in a wave of investment and innovation, positioni