Vireo growth sees $19k in stock purchases by Chicago Atlantic

Published 21/03/2025, 23:38
Vireo growth sees $19k in stock purchases by Chicago Atlantic

Chicago Atlantic Group, LP and its affiliates have recently increased their stake in Vireo Growth Inc. (NASDAQ:VREO) through a series of stock purchases, according to a recent SEC filing. The transactions, executed on March 19 and March 20, involved the acquisition of 45,000 subordinate voting shares at prices ranging from $0.4197 to $0.4309 per share. The total value of these purchases amounted to approximately $19,054. The timing appears strategic, as InvestingPro data shows the stock has gained over 23% in the past week, with the company currently valued at $161.57 million.

Following these transactions, Chicago Atlantic and its affiliates hold a significant position in Vireo Growth, with a total of 358,522 shares owned directly. Additionally, they maintain an indirect ownership of over 110 million shares, as noted in the filing. The company has shown revenue growth of nearly 13% over the last twelve months, though InvestingPro analysis indicates it operates with a moderate debt-to-equity ratio of 1.62.

These purchases by Chicago Atlantic, a ten percent owner, reflect a strategic move to bolster their investment in the pharmaceutical preparations company headquartered in Minneapolis. Investors tracking this development should note that Vireo’s next earnings report is due in 12 days, with InvestingPro offering additional insights through its comprehensive Pro Research Report, available with subscription.

In other recent news, Vireo Growth Inc. reported a 15.4% increase in full-year revenue, reaching $99.4 million, with fourth-quarter revenue rising by 3.5% to $25 million. Despite these gains, the company faced a net loss of $15.7 million in the fourth quarter due to one-time transaction expenses. Vireo Growth is also anticipating a transformative year ahead with strategic initiatives, including a new cultivation facility and expansion into adult-use sales in Minnesota. The company maintains a strong cash position of $91.6 million, which supports its growth plans. Furthermore, Vireo Growth is focusing on capital deployment in New York and Minnesota, with expectations of significant contributions from its New York facility by the second quarter of 2025. Analysts from Craig Hallum Capital Group inquired about the timeline for the new Minnesota facility, which is expected to be completed in 2025. Additionally, Vireo Growth is planning to divest a portion of its New York assets while positioning the remaining assets to produce high-end cannabis flower. The company is also in the process of executing merger transactions, which are expected to close in 2025, pending regulatory and shareholder approvals.

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