Vireo Growth Buys Hawthorne Gardening, Fortifies Balance Sheet and Ties With ScottsMiracle-Gro
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An announcement from Vireo Growth ( (TSE:VREO) ) is now available.
Vireo Growth Inc. has completed the acquisition of The Hawthorne Gardening Company from The Scotts Miracle-Gro Company in an all-share and warrant deal that delivers about US$35 million in cash, roughly US$58 million in net working capital and US$20 million in inventory to Vireo. The transaction is intended to strengthen Vireo’s balance sheet, create a procurement platform to improve supply chain efficiency across its portfolio and deepen its strategic relationship with ScottsMiracle-Gro, which gains a significant equity stake via Good Dog Holdings.
As part of the deal, Vireo issued 213 million subordinate voting shares and 80 million warrants at a US$0.85 strike price to Good Dog, giving it an initial 14% stake that could rise to about 19% if all warrants are exercised. Vireo has also nominated ScottsMiracle-Gro executive vice president Chris Hagedorn for election to its board, underscoring plans for operational integration of Hawthorne and aligning interests between the cannabis operator and its new strategic shareholder, with potential implications for future capital allocation and growth initiatives.
More about Vireo Growth
Vireo Growth Inc. is a cannabis-focused company operating in North America, with a portfolio that now extends into indoor and hydroponic gardening supplies through the acquisition of The Hawthorne Gardening Company. Hawthorne is a leading provider of nutrients, lighting and growing media for indoor cultivators, positioning Vireo more deeply in the ancillary cultivation supply chain.
Average Trading Volume: 44,930
Technical Sentiment Signal: Strong Sell
Current Market Cap: C$594.2M
See more data about VREO stock on TipRanks’ Stock Analysis page.
