Vireo Health, Inc.. Announces the Closing of First Tranche of Private Placement for Gross Proceeds of US$16M

Vireo Health, Inc..

Announces the Closing of Initial Tranche of Private Placement for Gross Proceeds of US$16M

, a physician-led medical cannabis company, is pleased to announce that it has completed a first tranche of a private placement of Series D preferred shares, issuing 357,634 Series D Shares for gross proceeds of US$16,093,545.00. 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 broker and bookrunner in connection with the Offering.

Vireo operates subsidiary companies in Minnesota, New York and Pennsylvania, with a workforce of over 150 employees, and intends to use the proceeds of the offering to finance its expansion plans in new and existing US markets.

“This Offering will allow Vireo to continue to fulfill its compassionate mission of helping patients safely alleviate pain with cannabis and implement on our aggressive growth plans causing a public listing in Canada” stated, Kyle Kingsley, M.D, Vireo’s Chairman & Chief Executive Officer.

Due to high investor demand, the Offering was up-sized from its initial 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) before March 20, 2019, holders of Series D Shares will receive an extra 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 business that is a reporting issuer in at least one jurisdiction of Canada, by means of any business combination or other similar transaction, or (ii) an initial public offering (“IPO”-RRB-, pursuant to that Vireo’s Common Stock (or the common stock of the resulting issuer) is listed on the Canadian Securities Exchange (“CSE”-RRB- or another market as mutually agreed upon by the business and Eight Capital.

About Vireo:
Vireo Health, Inc. (“Vireo”-RRB-, a physician-led multi-state medical cannabis company, is dedicated 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 provide their products for sale to qualifying patients in retail dispensaries and online. To find out more, please see vireohealth.com.

SOURCE

Published at Tue, 07 Aug 2018 14:26:42 +0000

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