Vireo Health, Inc. Announces the Closing of Initial Tranche of Private Placement for Gross Proceeds of US$16M
MINNEAPOLIS, Aug. 07, 2018 (GLOBE NEWSWIRE) — Vireo Health, Inc. (“Vireo” or the “Company”), a physician-led medical cannabis company, is pleased to announce that it has completed an initial tranche of a private placement of Series D preferred shares (the Series D Shares), issuing 357,634 Series D Shares for gross proceeds of US$16,093,545.00 (the “Offering”). Vireo expects to complete a final tranche of the Offering in the coming weeks, which will bring the total gross proceeds raised under the Offering to US$17,250,000. Eight Capital is acting as Vireo’s exclusive agent and bookrunner in connection with the Offering.
Vireo operates subsidiary companies in Minnesota, New York and Pennsylvania, with a workforce of more than 150 employees, and intends to use the proceeds of the Offering to finance its expansion plans in existing and new US markets.
This Offering will allow Vireo to continue to fulfill its compassionate mission of helping patients safely alleviate pain with cannabis and execute on our aggressive growth plans leading to a public listing in Canada.
Kyle Kingsley, M.D, Vireo’s Chairman & Chief Executive Officer
Due to high investor demand, the Offering was up-sized from its original amount of US$12 million.
Pursuant to liquidity warrants issued to subscribers of Series D Shares under the Offering, if the Company does not complete a Liquidity Event (as defined below) prior to March 20, 2019, holders of Series D Shares will receive an additional 0.1 of a Series D Share for each Series D Share held, for no additional consideration.
A “Liquidity Event” means either (i) a transaction with a company that is a reporting issuer in at least one jurisdiction of Canada, by way of any business combination or other similar transaction, or (ii) an initial public offering (“IPO”), pursuant to which Vireo’s Common Stock (or the common stock of the resulting issuer) is listed on the Canadian Securities Exchange (“CSE”) or another exchange as mutually agreed upon by the Company and Eight Capital.
Vireo Health, Inc. (“Vireo”), a physician-led multi-state medical cannabis company, is committed to safely alleviating pain by providing patients with best-in-class cannabis products and compassionate care. Vireo subsidiary companies cultivate cannabis in environmentally friendly greenhouses, manufacture pharmaceutical-grade cannabis extracts in state-of-the-art labs, and offer their products for sale to qualifying patients at retail dispensaries and online. For more information, please visit vireohealth.com.