Bruce Linton, the high-profile executive chairman of multi-state cannabis operator Vireo Health, invested $1 million in the Minneapolis-based company through a private placement stock offering that he organized.
Linton, who was named executive chairman of Vireo last November, acquired 1.74 million of the 13.65 million units issued in the private placement. The units consist of one share and one warrant to buy a share at CA$0.96.
All told, the company raised about $7.7 million (CA$10.5 million) through the offering.
The sale of additional tranches could raise another $2 million by April 17, for a total of $10 million.
Proceeds will be used for unspecified growth plans and general corporate purposes.
“This financing reflects the confidence of the capital markets in the potential growth of sales and margins for Vireo,” Linton said in a statement.
He added there are “significant opportunities,” for Vireo to improve operations and sales growth.
The company also said that over the past 90 days it has reduced corporate expenses by about 25% on an annualized basis.
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