Vireo Growth purchases Deep Roots Harvest for $133 million in Nevada

Vireo Growth Inc. has recently finalized its acquisition of Deep Roots Holdings Inc. in Nevada for $132.7 million. Deep Roots, established in 2023, operates as a robust player in the mature cannabis market within Nevada. The company’s operations include a 54,000-square-foot cultivation and manufacturing facility alongside ten active retail dispensaries. Deep Roots has shown consistent performance notable for its strategic location in Southern Nevada near the Utah border, contributing significantly to its success.

In addition to its presence in Nevada, Deep Roots has made investments in a retail chain in California and a vertical operator in Ohio and Massachusetts. The completion of this transaction involved the exchange of 255.2 million subordinate voting shares of Vireo at a reference price of $0.52 per share. The acquisition valued Deep Roots at 4.175 times its 2024 “closing EBITDA” of $30 million. Any potential adjustments to the transaction may occur based on the 2026 EBITDA performance as of December 31, 2026. The selling shareholders have also agreed to share lock-up provisions, with shares received as part of the deal unlocking gradually over a 33-month period.

The acquisition aligns with Vireo Growth Inc.’s strategic expansion plans and further solidifies its foothold in the cannabis market. Vireo Growth Inc. continues to position itself as a key player in the evolving landscape of the cannabis industry by leveraging opportunities for growth and diversification. The acquisition of Deep Roots Holdings Inc. is a strategic move that aims to enhance Vireo’s market presence and increase its portfolio offerings to meet the demands of a growing consumer base.

Industry experts view this acquisition as a significant milestone for Vireo Growth Inc., marking a key step in its growth strategy within the cannabis sector. The acquisition of Deep Roots Holdings Inc. not only expands Vireo’s operational capacity but also strengthens its position as a leading player in the industry. With a focus on synergies and value creation, Vireo is poised to drive innovation and shape the future of the cannabis market through strategic acquisitions and partnerships.

Overall, the acquisition of Deep Roots Holdings Inc. by Vireo Growth Inc. reflects the company’s commitment to growth, diversification, and strategic expansion within the cannabis industry. By capitalizing on emerging opportunities and leveraging its strengths, Vireo is well-positioned to navigate the dynamic landscape of the cannabis market and drive sustainable growth in the years to come.