Vireo Health Closes Nevada Acquisition, Launches New Terpene-Enhanced Cannabis Flower
It took nearly two years, but Minneapolis-based Vireo Health International has finally closed its acquisition of four cannabis licenses in Nevada.
In a news release, Vireo said the purchase would permit the multistate operator to cultivate and produce cannabis products for both medical and adult-use.
“We've been looking forward to the addition of these Nevada licenses to our portfolio of cannabis assets since this transaction was announced, and we've already identified several paths toward monetizing the substantial opportunities we see to serve Nevada's attractive adult-use and medical markets,” Vireo chairman and CEO Kyle Kingsley said via the release.
First announced in March 2019, the deal includes two separate cash-and-stock purchase agreements worth $2 million each.
In total, Vireo paid $1.5 million in cash and issued $2.5 million worth of promissory notes to acquire the Nevada licenses.
Vireo expects to “begin production in the near future” at a nearly 5,000 sq. ft. facility. It also plans to develop up to 10 additional acres of indoor and outdoor cultivation over the next year.
Those moves will enable the company to “serve the Nevada market as a low-cost supplier of premium products,” according to Kingsley.
Vireo, which is publicly traded on the Canadian Securities Exchange and the over-the-counter markets, also released a new line of “naturally-augmented cannabis flower,” called Amplifi.
The new line is sold in the company’s patent-pending “TerpSafe” packaging, which was developed last year and is intended to preserve freshness by “inhibiting the gradual loss of terpenes and other desirable compounds.”
“We believe that this proprietary technology will become the standard for flower packaging throughout the industry,” Kingsley said in a separate release.
According to Vireo’s chief scientific officer, Eric Greenbaum, TerpSafe keeps cannabis flower "fresher for longer," and it is “proven to reinfuse the product even after multiple openings.”
"Our research design included conditions which mimicked patient use, where the bottles were opened periodically over a period of weeks and conclusively showed that the terpene-preservation capabilities of our system are not adversely affected by the jar being opened at a normal-use rate,” he said.
According to the announcement, Vireo's Ultimate Purple strain is the first Amplifi product. It launched at licensed dispensaries in Maryland.
A second Amplifi strain, Gorilla Girl, will also be released in the new packaging later this month.
Vireo also plans to expand the product line to Arizona in February.
Vireo, which has over 400 employees, currently operates in five markets — Arizona, Maryland, Minnesota, New Mexico and New York. It is licensed to operate in seven states and own 29 retail dispensary permits.
Additional information is available in the news releases linked below.