Vireo Growth Inc · CSE:VREO
Vireo Growth — Merger or Acquisition (December 2024)
20 slides from Vireo Growth's merger presentation, Dec 23, 2024
Slide 1: Transaction Presentation December 18, 2024
CSE: VREO OTCQX: VREOF Transaction Presentation December 18, 2024
Slide 2: Disclaimer
Disclaimer || 2 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 c
Slide 3: Disclaimer (Cont’d)
Disclaimer (Cont’d) || 3 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, m
Slide 4: Today’s Presenters
Today’s Presenters Today’s Presenters || 4 John Mazarakis Chief Executive Officer & Co - Executive Chairman Amber Shimpa President of the Company and CEO of Minnesota, Maryland and New York Tyson Macdonald Chief Financial Officer
Slide 5: Executive Summary
Executive Summary Executive Summary || 5 Transaction Highlights o Increased Scale and Portfolio Diversity – Creates the 8 th and 6 th largest operator by 2025E revenue and EBITDA respectively, addressing a population of ~67mm across a 7 - state footprint, which allows for a lower overall cost of cap
Slide 6: Leadership Update
Leadership Update Leadership Update || 6 Tyson Macdonald • Appointed Chief Financial Officer, effective immediately • Previously served as a Managing Partner at TrueRise Capital, CEO of Nova Net Lease REIT, CFO of Cloud Cannabis and an Executive Vice President of Corporate Development at Acreage Hol
Slide 7: Strategic Equity Infusion
Strategic Equity Infusion Strategic Equity Infusion || 7 2 • Vireo announced an equity financing transaction totaling $75 million Transaction Overview • The financing results in the issuance of 120,000,000 Subordinate Voting Shares Structure • Offering priced at $0.625 per Vireo Subordinate Voting S
Slide 8: Transformative M&A
Transformative M&A Transformative M&A || 8 3 • Vireo signed three definitive documents and one binding MOU 1 to acquire four single - state operators and the Arches technology platform in a series of all - stock transactions • The transactions will expand Vireo’s operating footprint to the states of
Slide 9: Summary of Pro Forma Capitalization
Summary of Pro Forma Capitalization Summary of Pro Forma Capitalization || 9 Net Debt Bridge &XUUHQW1HW'HEW 0 $7DUJHWV 1HW 'HEW &DSLWDO5DLVH 3URFHHGV 3)1HW'HEW 7D[HV 3)1HW'HEWLQFOXGLQJ 7D[HV Pro Forma Ownership 2 Existing Vireo Shareholders M&A Targets Capital Raise Investors 1 (as of 11/30/2024) No
Slide 10: Differentiated Pro Forma Geographic Footprint
Pending Transaction Targets Current Vireo Footprint Differentiated Pro Forma Geographic Footprint Differentiated Pro Forma Geographic Footprint || 10 NY MN MD NV UT MO FL Florida 3 Utah Nevada Missouri New York Minnesota Maryland 1 ($ in millions) The Flowery Wholesome Deep Roots Proper Vireo Vireo
Slide 11: Pro forma revenue and EBITDA by company
$394mm $54mm $48mm $102mm $92mm $11mm $46mm $42mm 2024E Revenue $478mm 2025E Revenue $636mm 2026E Revenue $94mm 2 $15mm $14mm $27mm $28mm ($4mm) $23mm $18mm 2024E EBITDA $133mm 2025E EBITDA $205mm 2026E EBITDA 48 10 5 1 5 10 4 11 4 8 4 3 Dispensaries See state specific breakdown Unlimited 3 dispensa
Slide 12: Benchmarking: Revenue & EBITDA
Benchmarking: Revenue & EBITDA Benchmarking: Revenue & EBITDA || 12 2024E Revenue 2024E EBITDA Vireo Pro Forma Vireo Pro Forma Source: S&P Capital IQ Note: EBITDA is a non - GAAP measure (please see slide 3 for further information); Revenue and EBITDA estimates (other than Vireo and Vireo Pro Forma)
Slide 13: Benchmarking: Revenue & EBITDA Growth
Benchmarking: Revenue & EBITDA Growth Benchmarking: Revenue & EBITDA Growth || 13 2024E – 2025E Revenue Growth 2024E – 2025E EBITDA Growth Vireo Pro Forma Vireo Pro Forma Source: S&P Capital IQ Note: EBITDA is a non - GAAP measure (please see slide 3 for further information); Revenue and EBITDA esti
Slide 14: Benchmarking: Net Leverage & Cash
Benchmarking: Net Leverage & Cash Benchmarking: Net Leverage & Cash || 14 Net Leverage 1 Estimated Cash 2 [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ Vireo Pro Forma Vireo Pro Forma (6.1x) (4.2x) $85 Net Leverage Net Leverage including Taxes 3 Source: Public Filings,
Slide 15: Target Markets: Missouri and Nevada
Target Markets: Missouri and Nevada Target Markets: Missouri and Nevada || 15 Missouri – Proper Brands Moorhead Otsego • Adult - use market established in 2022 following a well - established medical program (legalized in 2018) • Proper currently operates 11 dispensaries and 1 cultivation facility lo
Slide 16: Target Markets: Utah and Florida
Target Markets: Utah and Florida Target Markets: Utah and Florida || 16 Utah - Wholesome Moorhead Otsego • Medical program established in 2018, with first sales in 2020; In 2023, Utah state legislature simplified the application process for patients seeking medical cannabis card • Wholesome currentl
Slide 17: Arches Technology
Arches Technology || 17 Arches’ 3 Core Areas for Success Engagement Defensibility Traffic Driven to platform through download initiatives, capabilities such as favoriting and rewards dollars reminders and RFM scoring Reach RFM Scoring • Tracks recency, frequency and monetary metrics • Top 20% of sho
Slide 18: Q&A
Q&A || 18 Q&A
Slide 19: Appendix: Full Capitalization Table Summary
Appendix: Full Capitalization Table Summary Appendix: Full Capitalization Table Summary || 19 (in millions) Vireo Capital Raise M&A Pro Forma Subordinate Voting Shares 200.5 120.0 763.9 1,084.4 Multiple Voting Shares 0.3 0.3 Total Subordinate Voting Shares (w/ Multiple Voting Shares Converted) 230.3
Slide 20: VIFeCO
yr VIFeCO CSE: VREO OTCQX: VREOF