Chicago Atlantic Credit Opportunities, LLC, a major shareholder in Vireo Growth Inc. (NASDAQ: VREO), recently acquired 60,000 Subordinate Voting Shares of the cannabis company at a price of $0.4193 per share. The total cost of the purchase was approximately $25,158. The acquisition occurred on April 4, 2025, and was officially disclosed in a Form 4 filing with the Securities and Exchange Commission (SEC).
This move comes during a challenging period for Vireo Growth, as its stock has dropped over 24% in the past week. Despite the decline, the company’s market capitalization remains at $139 million. The new purchase increases Chicago Atlantic’s direct holdings in Vireo Growth to 11,206,278 shares. This transaction is part of Chicago Atlantic’s ongoing relationship with the company, with previous investments also recorded in SEC filings.
The price range for the recent purchase was between $0.4018 and $0.44 per share. This investment highlights Chicago Atlantic’s confidence in Vireo Growth, which operates in the pharmaceutical preparations sector. Despite the recent dip in stock value, data from InvestingPro suggests that Vireo’s shares are currently undervalued.
In related news, Vireo Growth Inc. reported a 15.4% increase in its full-year revenue, reaching $99.4 million, with the fourth quarter showing a 3.5% revenue increase to $25 million. However, the company faced a net loss of $15.7 million in the fourth quarter, largely due to one-time transaction costs. Vireo Growth is focusing on strategic expansion, including the development of a new cultivation facility and growth in adult-use sales, which are expected to drive transformation in 2025.
The company finished the year with a solid cash position of $91.6 million, bolstered by an $81 million private placement. Vireo is optimistic about significant revenue growth from its New York facility and plans to finalize mergers in 2025, pending regulatory and shareholder approvals. Analysts are also closely watching the progress of Vireo’s new Minnesota facility, which is expected to be completed within the year. Additionally, the company plans to divest part of its New York assets while emphasizing the production of high-end cannabis flower.
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