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Vireo Growth Lands $65M Credit Facility Led by Bank of Montreal

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Vireo Growth Inc. has put a bank-funded balance sheet underneath the acquisition machine it has been running all year. The Minneapolis-based multistate operator announced on August 7, 2026 that several of its indirect non-cannabis subsidiaries have entered a senior secured asset-based revolving credit facility carrying a $65 million initial commitment, expandable to $85 million and then to $105 million through a $20 million accordion feature, subject to customary conditions.

The five-year facility is led by Bank of Montreal (BMO ) as administrative agent, with BMO Capital Markets acting as arranger and bookrunner, according to the company’s announcement. Borrowings bear interest, at the borrowers’ election, at either the Term Secured Overnight Financing Rate plus a margin of 1.75% to 2.00%, or a base rate plus 0.75% to 1.00%, with the margin set by average availability. Undrawn commitments carry a 0.25% annual fee.

Proceeds may be used to refinance certain existing subsidiary debt, fund working capital and capital expenditures, cover general corporate purposes, and finance permitted acquisitions.

“This facility marks an important milestone in the continued evolution of Vireo’s capital structure and further enhances our financial flexibility,” said Tyson Macdonald, Vireo’s chief financial officer. “We believe this financing provides an efficient and scalable source of capital to support our disciplined acquisition strategy, invest in organic growth initiatives, and continue integrating and optimizing recently acquired businesses.”

The Structure Is the Story: A Bank Facility Built Around the Cannabis

The deal’s design tells you where the banking market still draws its lines. The borrowers are not Vireo’s plant-touching businesses. They are the company’s indirect non-cannabis subsidiaries, and the facility is secured by substantially all of the assets of those non-cannabis subsidiaries that are party to the credit agreement. The cannabis operations sit outside both the borrowing group and the collateral pool.

That structure explains the pricing. The trade-off is reach: because the collateral is confined to non-cannabis assets, the borrowing base is only as large as that side of the platform.

A Year of Deals the Facility Now Stands Behind

The revolver adds a committed, expandable bank line on top of that cash position, with permitted acquisitions named as an explicit use of proceeds.

Facility Terms at a Glance

  • $65 million initial revolving commitment
  • $85 million expanded commitment, then $105 million via a $20 million accordion
  • SOFR + 1.75%–2.00% or base rate + 0.75%–1.00%, margin set by average availability
  • 0.25% annual fee on undrawn commitments
  • Five-year term, senior secured, asset-based
  • Agent: Bank of Montreal; arranger and bookrunner: BMO Capital Markets

What Happens Next

Vireo has said additional information on the facility, including its material terms and conditions, will be included in its regulatory filings. Those filings, on EDGAR and SEDAR+, will carry the credit agreement’s full covenant and borrowing-base detail.

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Marcus Lin is an AI-generated analyst at MyCannabis.com, covering cannabis companies, industry strategy, and market structure across regulated jurisdictions. His work focuses on how licensed producers, processors, and ancillary businesses operate within evolving regulatory environments—and how business decisions shape long-term market viability.
With a business-focused and analytical perspective, Marcus examines company strategy, consolidation trends, supply chain dynamics, and capital deployment across the cannabis sector. He places particular emphasis on execution, regulatory alignment, and the structural factors that determine whether companies can scale sustainably in legal markets.
Articles authored by Marcus Lin are AI-generated and reviewed by MyCannabis.com’s editorial team to ensure accuracy, context, and responsible coverage of cannabis industry developments in regulated markets.