Vireo Growth Secures $60 Million Loan for New York and Florida Facilities

Vireo Growth Inc. announced on October 5, 2026, that five subsidiaries have entered into a US$60 million real estate financing with a U.S. commercial bank and institutional lender, secured by the company’s cannabis cultivation and production facilities in Johnstown, New York, and Palatka, Florida.

The borrowers are Vireo Property Holdings LLC, Vireo Property Holdings New York LLC, Vireo Property Holdings Florida LLC, 256 County Route 117 Perth LLC, and 160 Comfort Road LLC, each a Delaware limited liability company and collectively defined in the announcement as the Borrower. The company did not name the lender. Vireo, based in Minneapolis, is listed on the CSE under the symbol VREO and on OTCQX under VREOF.

Approximately US$49 million of the financing proceeds is being used to refinance existing senior debt entered into in connection with the company’s previously announced option to purchase the Johnstown facility. Approximately US$11 million of the proceeds is being used to finance the acquisition of the Palatka facility.

Vireo described the Palatka facility as a significant cultivation and production asset supporting its Green Dragon operations and as an important component of its strategy to build scale and strengthen its vertically integrated platform in Florida. The facility was previously leased from Rainbow Palatka FL LLC. In connection with the acquisition, the existing lease with Rainbow will be terminated and a new lease with Green Dragon Florida LLC, an affiliate of Vireo, will be executed.

Loan Terms and Security Package

The US$60 million loan bears interest at 8.5% per annum and matures on April 2, 2034. The loan is secured by a first-priority mortgage on the Johnstown and Palatka properties and by a first-priority pledge of membership interests by each of Vireo Health Inc., a wholly owned subsidiary of Vireo, Vireo Property Holdings LLC, Vireo Property Holdings New York LLC, and Vireo Property Holdings Florida LLC in their respective wholly owned subsidiaries comprising the Borrower. The loan is further secured by a security interest in substantially all personal property of the Borrowers and other loan parties and is subject to customary terms and conditions.

“This $60 million credit facility is an important milestone for Vireo and directly supports our strategic growth plans,” said Tyson Macdonald, chief financial officer of Vireo Growth. “The facility carries an 8.5% interest rate, among the most attractive rates in the cannabis sector, and reflects the strength of our business and continued access to institutional capital as we execute on our growth strategy. We look forward to working with the lender as a long-term banking partner for our future capital needs.”

Vireo said additional information regarding the financing and its material terms and conditions will be included in the company’s regulatory filings.

Earlier Johnstown Purchase and Credit Facility

The senior debt being refinanced was entered into in connection with the option to purchase the Johnstown facility, a transaction Vireo detailed in a May 26, 2026, announcement. In that release, the company said its subsidiary 256 County Route 117 Perth LLC completed the acquisition of the premises at 256 County Route 117 in Perth, New York, the site of Vireo’s Johnstown facility, a 389,000-square-foot cannabis cultivation and production facility previously leased from IIP-NY 2 LLC, a subsidiary of Innovative Industrial Properties Inc. (IIPR ) Vireo acquired the property after exercising a purchase option contained in a lease between Vireo Health of New York LLC, as tenant, and IIP, as landlord.

The purchase price for the property was US$88.5 million. Under a purchase agreement between the buyer and IIP dated May 26, 2026, IIP provided seller financing in the principal amount of US$49 million through a note that bears interest at 15% per annum, matures on May 25, 2027, and is subject to two one-year extension options. The seller note is secured by a first-priority mortgage on the property and is guaranteed by Vireo Growth. The balance of the purchase price, together with closing costs, was funded by a $41.0 million loan from Chicago Atlantic Financial Services LLC. That loan is secured by a second-priority mortgage on the property, subordinate to the seller note under an intercreditor agreement, and is guaranteed by Vireo Health Inc.

Vireo also announced on August 7, 2026, that certain of its indirect non-cannabis subsidiaries had entered into a senior secured asset-based revolving credit facility providing a $65 million initial commitment, expandable to $85 million and further to $105 million through a $20 million accordion feature, subject to customary conditions. Borrowings under that five-year facility bear interest, at the borrowers’ election, at either Term SOFR plus a margin of 1.75% to 2.00% or the base rate plus a margin of 0.75% to 1.00%, with the margin determined by average availability, and the facility carries a 0.25% annual unused commitment fee on undrawn commitments. The facility was established under a credit agreement led by Bank of Montreal as administrative agent, with BMO Capital Markets acting as arranger and bookrunner. Proceeds may be used to refinance certain existing indebtedness of the subsidiaries, fund working capital, capital expenditures, and other general corporate purposes, and finance permitted acquisitions. The facility is secured by substantially all of the assets of the company’s non-cannabis subsidiaries that are parties to it.

Vireo describes itself as a leading vertically integrated cannabis company building a platform across cannabis and adjacent agricultural markets. According to the company, it operates cultivation, manufacturing, retail dispensaries, home delivery, distribution, and agricultural supply businesses across the United States, with operations in 10 states and more than 170 dispensaries nationwide.