Chicago Atlantic and Lineage Merchant Partners announce merger agreements

Chicago Atlantic and Lineage Merchant Partners have announced the execution of definitive merger agreements entered into by Vireo Growth, in which Chicago Atlantic is the largest stockholder, with three leading single-state operators: Proper Cannabis (Missouri), Deep Roots Harvest (Nevada), and WholesomeCo Cannabis (Utah). The merger agreements with Wholesome and Proper include the acquisition of Arches, a cutting-edge analytics and distribution technology platform joint venture between Wholesome and Proper. In addition, the Company signed a binding memorandum of understanding to acquire The Flowery.

The combined entity (assuming Vireo completes all of the merger transactions) will span seven states, managing approximately 1,043,500 square feet of cultivation and manufacturing space across nine cultivation facilities, and operating 48 retail dispensaries. Supported by Chicago Atlantic, Vireo announced a $75 million equity securities offering at $0.625 per Vireo subordinate voting share, with closing subject to customary approvals, valuing the total deals collectively at approximately $397 million.

John Mazarakis, co-founder of Chicago Atlantic, has been appointed CEO and Co-Executive Chairman of Vireo.

As CEO, John Mazarakis will lead Vireo in creating its first comprehensive platform for cannabis operators.