On March 10, 2020, Vireo Health announced that it closed the first tranche of a non-brokered private placement offering of 13,651,574 units at a price per unit of $0.77 for aggregate gross proceeds of $10.5 million.
Each unit is comprised of one subordinate voting share and one subordinate voting share purchase warrant. Each warrant entitles the holder to purchase one subordinate voting share for a period of three years from the date of issuance at an exercise price of $0.96, subject to adjustment in certain events. Vireo Health has the right to force the holders of the warrants to exercise the warrants if, prior to the maturity date, the five-trading-day volume weighted-average price of the subordinate voting shares equals or exceeds $1.44, subject to adjustment in certain events.
Cassels represented Vireo Health with a team that included Jonathan Sherman, Tayyaba Khan and David Singh (Securities and Cannabis).