Physician-Led Vireo Health Expands into Adult-Use Cannabis State with Massachusetts Acquisition

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MINNEAPOLIS— Vireo Health International, Inc., a science-focused, multi-state cannabis company, announced the acquisition of Mayflower Botanicals Inc., a Registered Marijuana Dispensary certificate holder in Massachusetts.

In conjunction with the transaction, Vireo acquired 73 acres of land zoned for the production, processing, and distribution of medical cannabis, with an expedited path toward adult-use licensure.

“As a board-certified emergency room physician, I support adult-use programs because I believe cannabis to be a safer and less addictive alternative to both alcohol and tobacco,” said Chief Executive Officer, Kyle Kingsley, M.D. “It’s time to recognize that a public health policy focused on adults replacing their consumption of alcoholic beverages and tobacco products with cannabis has the potential to save thousands of lives each year.”

Data from the Centers for Disease Control and Prevention indicates that the excessive alcohol use in the United States kills about 88,000 people each year. In Massachusetts, excessive drinking results in 1,525 deaths annually.  According to a 2016 study, cigarette smoking is responsible for more than 480,000 deaths per year, including nearly 42,000 deaths from secondhand smoke exposure. In 2015, an estimated 700,000 adults in Massachusetts were regular cigarette smokers.

Dr. Kingsley continued, “As we expand into adult-use states such as Massachusetts, our physician-led team will provide consumers with medically- and scientifically-based products and advice designed to highlight the potential health benefits of replacing alcohol and tobacco with cannabis.”

In 2008, Massachusetts became the 18th state in the United States to adopt a medical cannabis program. In 2016 the state voted to legalize recreational use, and the first recreational sales began on November 20, 2018. According to Massachusetts’ Medical Use of Marijuana Program, in February 2019, there were 59,175 active qualifying patients enrolled in the state’s medical cannabis program. The Massachusetts Cannabis program currently includes 49 Registered Marijuana Dispensaries with certificates to cultivate, process, and distribute cannabis.

This transaction, which was previously disclosed, was financed through a combination of cash and stock and represents Vireo Health’s third acquisition since it began trading on the Canadian Securities Exchange under the ticker symbol “VREO.” Vireo Health now has more than 300 employees in nine states including Arizona, Maryland, Massachusetts, Minnesota, New Mexico, New York, Ohio, Pennsylvania, and Rhode Island.

Vireo Health International, Inc. is America’s leading science-focused, multi-state cannabis company. Vireo’s physician-led team of more than 300 employees provides best-in-class cannabis products and customer experience. Vireo cultivates cannabis in environmentally-friendly greenhouses, manufactures pharmaceutical-grade cannabis extracts, and sells its products at both company-owned and third-party dispensaries. The Company currently has operations in nine states including Arizona, Maryland, Massachusetts, Minnesota, New Mexico, New York, Ohio, Pennsylvania, and Rhode Island.