MINNEAPOLIS, November 5, 2020 / PRNewswire / – Vireo Health International, Inc. (“Vireo” or the “Company”) (CNSX: VREO, OTCQX: VREOF), the science-driven multi-state cannabis company with active operations in markets exclusively medical and licensing in seven states and the Commonwealth of Porto Rico, announced today that it has entered into a non-binding term sheet with Green Ivy Capital and its affiliates (the “Lenders”) on a senior secured term loan with deferred drawing (the “Credit Facility” ) in a total principal amount of up to $ 46,000,000. Lenders are not obligated to finance until final loan documents are signed, which is expected in December.
The credit facility is not convertible, has a term of three years and loans issued under the facility will bear interest at the fixed annual rate of 13.25%. For all advances under the facility, the term sheet specifies that Lenders will receive warrants at a warrant coverage rate of 30% based on the gross amount of each tranche advanced, with a warrant exercise price equal to at a premium of 15% on the closing price on the trading day immediately preceding each financing date. A first installment of US $ 10.0 million, net of commissions and closing costs, should close in December, subject to the execution of the final documents, with additional tranches subject to certain performance measures or regulatory changes. Vireo intends to use the proceeds of the loan to support working capital, organic growth and acquisition opportunities.
“We are very excited about the prospect of additional non-dilutive funding to help fund our growth, particularly given our concerns about the potential dilutive effects of stock offerings at current prices and the significant upside that we continue to increase. forecast in each of our main markets. said Chief Executive Officer Dr. Kyle kingsley. “Most importantly, this facility would allow Vireo to continue to enjoy first-mover benefits in our five core markets, most of which are expected to transition to adult use sometime in 2021. We remain committed to being strong capital managers for our shareholders while running against our growth and profitability initiatives. ”
Jean Mazarakis, Director of Green Ivy, commented: “Vireo occupies leading positions in several of the most attractive cannabis markets in the world. United States, and the improvement in the Company’s operations and the potential to benefit from a regulatory catalyst attracted us to this opportunity. We look forward to partnering with the Vireo leadership team and providing them with the support they need to execute their growth strategy. “
The Canadian Securities Exchange (CSE) has neither approved nor disapproved the contents of this press release and accepts no responsibility for the adequacy or accuracy of this press release. This press release does not constitute an offer to sell or a solicitation of an offer to sell the securities in United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or any state securities law and may not be offered. or sold in United States or to US Persons, unless they are registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.
Caution regarding forward-looking statements
This press release contains statements which Vireo believes are or may be considered “forward-looking statements” as defined in applicable securities laws. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on current beliefs, expectations or assumptions about the future of the business, future plans and strategies, operating results and other future conditions of the Company. All statements other than statements of historical fact included in this press release regarding our outlook, plans, financial condition or business strategy, including statements expressing the expectation that Vireo will enter into the “Credit Facility”, or the date at which any transaction is expected to close and / or fund, may constitute forward-looking statements. In addition, forward-looking statements can generally be identified by the use of forward-looking words such as “plans”, “expects” or “does not expect”, “is expected”, “anticipate”, “budget” , “planned”, “estimates”, “forecasts”, “will continue”, “intends to”, “intends to”, “has the potential”, “anticipates”, “does not anticipate”, ” believes “,” should, “” should not “, or variations of such words and expressions which indicate that certain actions, events or results” could “,” could “,” could “,” could “or” would “, “To be taken”,, “or” to be reached “, or the negative of these terms or variations thereof or similar terms. In addition, forward-looking statements may be included in various documents filed with the SEC or on SEDAR, or may be contained in press releases or oral statements made by or with the approval of any of the authorized senior officers of Vireo. Although Vireo believes that the expectations reflected in these forward-looking statements are reasonable, the Company cannot guarantee that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as to assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. The reader should not place undue reliance on these statements as a number of important factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, expectations, estimates and intentions expressed in these forward-looking statements. Risks, uncertainties and other factors which may cause the actual results, performances or achievements of the Company, as the case may be, to differ materially from the future results, performances or achievements expressed or implied by such forward-looking information.
Readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release, which reflect the views of management only as of the date hereof. Unless required by law, Vireo does not undertake to revise or publish the results of any revision of any forward-looking statement. Readers are cautioned, however, to consult any additional disclosures Vireo makes in its reports filed on SEDAR or with the SEC, or in future press releases. All subsequent written and oral forward-looking statements attributable to Vireo or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained herein.
About Vireo Health International, Inc.
Vireo Health International, Inc. (“Vireo” or the “Company”) is a physician-led cannabis company focused on bringing the best of technology, science and engineering to the cannabis industry. cannabis. Vireo manufactures exclusive branded cannabis products in state-of-the-art green greenhouses and distributes its products through its growing network of green products.MT retail dispensaries and through hundreds of third-party dispensaries in seven states. Vireo’s team of more than 300 employees, led by scientists, engineers and cultivation experts, is focused on efficiency and creating best-in-class products, while driving scientific innovation within the company. industry and developing significant intellectual property. Today, Vireo is licensed to cultivate and / or process cannabis in eight markets. The Company operates in seven of these eight markets, including the main markets of Arizona, Maryland, Minnesota, New Mexico, new York, Pennsylvania. The Company holds 32 retail dispensary licenses, of which 13 are currently open. For more information on Vireo Health, please visit www.vireohealth.com.
About Green Ivy Capital / Chicago Atlantic
Green Ivy Capital, LLC (“Green Ivy”) manages a diverse portfolio of cannabis lending investments and actively invests throughout the value chain. Green Ivy is a subsidiary of Chicago Atlantic Group, LLC (“Chicago Atlantic”), an asset management company specializing in direct lending and opportunistic private credit investing. Founded in 2018 by Tony cappell, Jean Mazarakis, and Andreas Bodmeier, Chicago Atlantic seeks to capitalize on North American investment opportunities that are time sensitive, complex or in dislocated markets, where risk is fundamentally mispriced.
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SOURCE Vireo Health International, Inc.