Vireo Growth provides updates on business deals

Vireo Growth has shared news about two separate business transactions.

Deal 1: Buying Hawthorne Gardening Company from Scotts Miracle-Gro
Vireo Growth is planning to buy The Hawthorne Gardening Company, which sells products like plant nutrients, grow lights, and gardening supplies for indoor and hydroponic (soil-free) gardening across North America.

This deal could be finalised as soon as five business days from the date of this announcement, provided certain conditions are met. The key terms of the deal are expected to match what was shared during Vireo's earnings call on 17 March 2026.

Under this agreement, Vireo would receive at least US$35 million in cash, approximately US$50 million in working capital (funds available for day-to-day operations), and approximately US$20 million worth of inventory (mostly soil), to be delivered to the company over two years. In exchange, Vireo would give Scotts Miracle-Gro 206 million voting shares in Vireo, as well as a warrant (an option to buy additional shares later) to purchase 80 million more shares at US$0.85 per share, exercisable at any point over the next five years.

As part of the deal, Vireo also plans to appoint Chris Hagedorn, a senior executive at Scotts Miracle-Gro who leads the Hawthorne business, to its Board of Directors, pending shareholder approval.

This deal still needs to be finalised through formal legal agreements acceptable to both sides, and must receive all required regulatory approvals, including from the Canadian Securities Exchange if required. There is no guarantee the deal will be completed.

Deal 2: Buying assets from PharmaCann in Colorado
On 16 December 2025, Vireo Growth announced an agreement to purchase certain retail business assets from PharmaCann in Colorado. As part of that deal, Vireo also agreed to temporarily manage those Colorado retail locations for PharmaCann while the purchase is being finalised.

Vireo has now confirmed that this management arrangement became active on 22 March 2026. As required by the purchase agreement, Vireo has placed 90,740,741 of its voting shares into escrow (held securely by a third party, Odyssey Trust Company) until the full purchase is completed. The acquisition of the PharmaCann Colorado assets is expected to close in the second quarter of 2026, subject to regulatory approval.

Vireo's CEO, John Mazarakis, commented: "We are excited that our management agreement is now active, allowing our Colorado team to manage the PharmaCann Colorado locations during the period between signing and closing."