Vireo Growth Inc · CSE:VREO
Vireo Growth — Merger or Acquisition (December 2024)
20 slides from Vireo Growth's merger presentation, Dec 18, 2024
Slide 1: Transaction Presentation
Transaction Presentation December 18, 2024 CSE: VREO OTCQX: VREOF
Slide 2: Disclaimer
Disclaimer CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This document includes information, statements, beliefs and opinions which are forward-looking, and which reflect current estimates, expectations and projections about future events, referred to herein and which constitute “forward-lo
Slide 3: Disclaimer (Cont’d)
Disclaimer (Cont’d) CANNABIS-RELATED ACTIVITIES ARE ILLEGAL UNDER U.S. FEDERAL LAWS: The U.S. Federal Controlled Substances Act classifies “marihuana” as a Schedule I drug. Accordingly, cannabis-related activities, including without limitation, the cultivation, manufacture, importation, possession,
Slide 4: Today’s Presenters
Today’s Presenters Amber Shimpa John Mazarakis Tyson Macdonald President of the Company and CEO of Minnesota, Chief Executive Officer & Co-Executive Chairman Chief Financial Officer Maryland and New York Today’s Presenters || 4
Slide 5: Executive Summary
Executive Summary On December 18, 2024, Vireo Growth Inc. (“Vireo”) announced a series of transformational corporate events that it believes will greatly enhance its platform, positioning the company for profitable growth 1 Leadership Update • Appointment of John Mazarakis as CEO and Co-Executive Ch
Slide 6: Leadership Update
1 Leadership Update John Mazarakis Tyson Macdonald CEO & Co-Executive Chairman Chief Financial Officer • Appointed Chief Executive Officer and Co-Executive Chairman effective • Appointed Chief Financial Officer, effective immediately immediately • Previously served as a Managing Partner at TrueRise
Slide 7: Strategic Equity Infusion
2 Strategic Equity Infusion Transaction Overview • Vireo announced an equity financing transaction totaling $75 million • The financing results in the issuance of 120,000,000 Subordinate Voting Shares Equity Offering Structure Amount Raised ($USD) $75mm Pricing $0.625 SVS Issued 120,000,000 Offering
Slide 8: Transformative M&A
3 Transformative M&A • Vireo signed three definitive documents and one binding MOU1 to acquire four single-state operators and the Arches technology platform in a series of all-stock transactions Transaction Overview • The transactions will expand Vireo’s operating footprint to the states of Missour
Slide 9: Summary of Pro Forma Capitalization
Summary of Pro Forma Capitalization Net Debt Bridge Pro Forma Ownership2 (as of 11/30/2024) . 21 1.1 12 . 11 8 8.4 ( .0 ) Existing Vireo Shareholders . M&A Targets Capital Raise Investors Current et Debt1 Tar ets et Capital aise P et Debt Ta es P et Debt includin Debt Proceeds Ta es Note: Net debt i
Slide 10: Differentiated Pro Forma Geographic Footprint
Differentiated Pro Forma Geographic Footprint MN NY UT NV MO MD Current Vireo Footprint Pending Transaction Targets FL ($ in millions) Maryland1 Minnesota New York Missouri Nevada Utah Florida3 Company Vireo Vireo Vireo Proper Deep Roots Wholesome The Flowery Year Founded 2014 2014 2014 2014 2014 20
Slide 11: State-by-State Operational Snapshot
State-by-State Operational Snapshot Vireo Proper Deep Roots WholesomeCo The Flowery1 Total Maryland Minnesota New York Missouri Nevada Utah Florida 2024E Revenue $42mm $46mm $11mm $92mm $102mm $48mm $54mm $394mm 2025E Revenue $478mm 2026E Revenue $636mm 2024E EBITDA $18mm $23mm ($4mm) $28mm $27mm $1
Slide 12: Benchmarking: Revenue & EBITDA
Benchmarking: Revenue & EBITDA ($ in millions) 2024E Revenue 2024E EBITDA 1, 44 40 1,1 0 1,1 1 00 880 2 21 20 8 4 0 4 4 297% 12 4 10 695% 08 4 2 1 1 1 1 0 20 12 Vireo Vireo Pro Pro Forma Forma 2025E Revenue 2025E EBITDA 1,4 8 1 8 1,2 1,18 288 Vireo PF 2026E EBITDA 24 Vireo PF 2026E Revenue 1 1 20 48
Slide 13: Benchmarking: Revenue & EBITDA Growth
Benchmarking: Revenue & EBITDA Growth 2024E – 2025E Revenue Growth 2024E – 2025E EBITDA Growth 4 21 1 42 1 1 20 18 4 8 2 (0 ) (1 ) (1 ) (1 ) (4 ) ( ) (2 ) Vireo Vireo Pro Pro Forma Forma Source: S&P Capital IQ Benchmarking: Revenue & EBITDA Growth || 13 Note: EBITDA is a non-GAAP measure (please see
Slide 14: Benchmarking: Net Leverage & Cash
Benchmarking: Net Leverage & Cash ($ in millions) Net Leverage1 Estimated Cash2 Net Leverage including Taxes3 Net Leverage 18 (6.1x) . (4.2x) .4 2. . .1 .0 2.8 1.4 1.2 0. 1 1 11 2.4 $85 .0 2.1 2.1 4.2 4.0 4.1 0.0 1. 0 1.1 0.2 . 0.0 1.4 8 1 1.0 2.1 0. 1. 1.8 0.2 0.4 1.4 0. 21 14 10 0.8 0.8 0.1 0.4 0.
Slide 15: Target Markets: Missouri and Nevada
Target Markets: Missouri and Nevada Missouri – Proper Brands Nevada – Deep Roots Bridgeton Kirkwood University City North Las Vegas Moorhead Ellisville Rock Hill Moorhead West Wendover Kansas City Crestwood Warrenton South County Las Vegas Festus West Pahrump Otsego Festus East House Springs Otsego
Slide 16: Target Markets: Utah and Florida
Target Markets: Utah and Florida Utah - Wholesome Florida – The Flowery1 Tallahassee Jacksonville Centerville Moorhead Moorhead Ocala Inverness Port Orange Bountiful Grantsville Clearwater West Palm Venice Hollywood Otsego Otsego Miami Homestead • Medical marijuana program launched in 2016 with ~870
Slide 17: Arches Technology
Arches Technology Arches is an omni-channel technology platform for cannabis operators with a comprehensive offering across point-of- sale, customer engagement, digital marketing and delivery to drive sales growth rches’ Core reas for Success Traffic Driven to platform through download initiatives,
Slide 18: Q&A
Q&A Q&A || 18
Slide 19: Appendix: Full Capitalization Table Summary
Appendix: Full Capitalization Table Summary Capitalization Table Summary (as of 12/16/2024) (in millions) Vireo Capital Raise M&A Pro Form a Subordinate Voting Shares 200.5 1 20.0 7 63.9 1 ,084.4 Multiple Voting Shares 0.3 0.3 Total Subordinate Voting Shares (w/ Multiple Voting Shares Conv erted) 23
Slide 20: CSE: VREO OTCQX: VREOF
Wr VIFeCO CSE: VREO OTCQX: VREOF