Grown Rogue International Inc. (CSE:GRIN) (OTC:GRUSF) a craft cannabis company based in Oregon's Rogue Valley announced the termination of its advisory agreement with Vireo Growth Inc. (CSE:VREO) (OTCQX:VREOF) as of September 30, 2024.
- Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can't afford to miss out if you’re serious about the business.
The Deal
The deal, in place for 18 months, saw Grown Rogue providing advisory services to Vireo's cultivation operations across several markets, including New Jersey.
As part of the termination, Vireo will forfeit 4.5 million of the 8.5 million warrants it held in Grown Rogue, with a strike price of CAD $0.225, equivalent to approximately $759,375.
Additionally, Vireo has agreed to pay Grown Rogue $800,000, with the option to defer the payment in four quarterly installments of $250,000. Grown Rogue will retain 10 million Vireo warrants and receive full fees for services rendered during Q3.
Read Also: Tilray Reports $200M Q1 Net Revenue, Up 13% YoY As Net Loss Improves
CEO Obie Strickler of Grown Rogue expressed gratitude for the collaboration, emphasizing that the agreement helped Grown Rogue sharpen its strategy for national expansion. The company now plans to apply these learnings to its New Jersey operations and expand into Illinois in 2025.
Leadership Transition At Vireo Growth
On the same day, Vireo announced a leadership transition, with Amber Shimpa stepping into the role of CEO. Shimpa, with the company since 2014, previously served as President. She replaces Josh Rosen, who resigned from his role as CEO and interim CFO but will remain an advisor. Vireo also appointed Joe Duxbury as interim CFO.
Shimpa's leadership will focus on the company’s upcoming expansion into Minnesota's adult-use market next year.
Read Next: Hold My Beer: Breweries Offer THC On Tap In Minnesota, What Investors Need To Know