Vireo Health closes $23.5 million tranche of delayed draw term loan

By Taylor Fox

New York, March 26 – Vireo Health International Inc. closed on the first tranche of its $46 million senior secured delayed draw term loan with Chicago Atlantic Group as agent, according to a news release.

The first tranche of $23.5 million, net of fees and closing costs, will be utilized to support the company’s ongoing growth initiatives and working capital requirements.

The facility is non-convertible with a three-year term and will bear interest at a fixed annual rate of 13.625%, payable monthly in cash and 2.75% per annum in monthly PIK interest.

The lenders and agent will receive warrants at a rate of 30% coverage based on the gross amount of each tranche advanced, with a warrant strike price equal to the volume weighted average trading price of Vireo’s stock for the 10 days prior to closing.

Additional advances under the facility are subject to the discretion of the lenders, and the proceeds may be used for approved acquisitions or other purposes approved by the lenders.

Based in Minneapolis, Vireo researches cannabis for medical use.

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