Grown Rogue International Inc. (GRIN), a craft cannabis company based in Oregon’s Rogue Valley, has announced the termination of its advisory agreement with Vireo Growth Inc. (VREO) as of September 30, 2024. The agreement, which spanned 18 months, saw Grown Rogue providing expertise and guidance to Vireo’s cultivation operations across several markets, including New Jersey.
As part of the termination, Vireo will forfeit 4.5 million out of the 8.5 million warrants it held in Grown Rogue, with a strike price of CAD $0.225. Additionally, Vireo has agreed to pay Grown Rogue $800,000, with the option to defer the payment in four quarterly installments of $250,000. Despite the termination, Grown Rogue will retain 10 million Vireo warrants and will receive full fees for services rendered during the third quarter.
Grown Rogue CEO Obie Strickler expressed gratitude for the collaboration with Vireo, stating that the partnership helped the company refine its strategy for national expansion. Grown Rogue is now focused on applying these learnings to its existing operations in New Jersey and expanding into the Illinois market in 2025.
On the same day as the advisory agreement termination, Vireo announced a leadership transition. Amber Shimpa, who has been with the company since 2014 and previously served as President, has been appointed as the new CEO. She replaces Josh Rosen, who resigned from his position as CEO and interim CFO but will remain an advisor to the company. Vireo also appointed Joe Duxbury as interim CFO.
Shimpa’s leadership will be focused on guiding Vireo’s upcoming expansion into Minnesota’s adult-use cannabis market, which is set to launch next year. This move signifies Vireo’s commitment to expanding its presence in the growing cannabis market, despite the recent changes in its advisory agreement with Grown Rogue.
