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Vireo Health closes first tranche of debt financing with eyes on Md. expansion

Vireo Health International Inc., a physician-led, science-focused multi-state cannabis company, today announced that it has closed on the first tranche of the previously-announced senior secured, delayed draw term loan with Chicago Atlantic Group, an affiliate of Green Ivy Capital, and a group of lenders.

Chairman and CEO Dr. Kyle Kingsley said the money will be used for incremental expansion projects at its cultivation facilities in Maryland and Arizona in the second quarter.

The first tranche of $23.5 million, net of fees and closing costs, will be utilized to support the company’s ongoing growth initiatives and working capital requirements.

The facility is non-convertible with a three-year term, has an aggregate principal amount of up to $46,000,000, and will bear interest at a fixed annual rate of 13.625%, payable monthly in cash and 2.75% per annum in monthly PIK interest. The lenders and agent will receive warrants at an aggregate rate of 30% coverage based on the gross amount of each tranche advanced, with a warrant strike price equal to the volume weighted average trading price of Vireo’s stock for the 10 days prior to closing. Additional advances under the facility are subject to the discretion of the lenders and the proceeds may be used for approved acquisitions or other purposes approved by the lenders.

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