Minneapolis-based medical cannabis company Vireo Growth Inc. has signed an agreement to purchase WholsomeCo Cannabis of Bountiful. The acquisition is in conjunction with Vireo’s purchase of three other single-state cannabis operators in an-all stock transaction.
WholesomeCo Cannabis was launched in 2020 by co-founder and CEO Chris Jeffery. The acquisition includes WholesomeCo’s 22,500-square-foot facility in Bountiful and one retail dispensary. The acquisition price includes a $14 million upfront consideration plus a potential for up to a $37.5 million total purchase price depending on annualized future net revenues.
The acquisition also includes WholesomeCo’s proprietary omni-channel e-commerce and delivery platform Arches, which Vireo expects to deploy companywide.
Concurrent with the purchase of the Utah company, Vireo also signed agreements to acquire Proper Brands in Missouri, Deep Roots Harvest in Nevada and The Flowery in Florida. The management teams of the acquired properties will continue operate their businesses independently with the support of the parent company, Vireo said in a release.
“We are excited to make these announcements today and to welcome several well-established single-state operators to our company,” said Dr. Kyle Kingsley, co-executive chairman of Vireo. “When fully completed, these transactions will transform our balance sheet with an equity raise completed at a substantial premium to market, position us to capitalize on new competitive strengths, and enable us to deliver more compelling long-term value for all stakeholders.”