Bruce Linton Set to Become New Executive Chairman of This Minneapolis-based Multi-State Operator
Shares of the Company’s Stock Surged as Much as 35% During Today’s Trading Session
In our September 17, 2019, article titled “Bruce is Back,” we highlighted the many new investments and executive roles announced by the former Canopy Growth (TSX: WEED) (NYSE: CGC) founder and CEO Bruce Linton.
Linton disclosed all the details surrounding his new roles and positions which included U.S. MSOs Slang Worldwide (CSE: SLNG) (OTCPK: SLGWF) and Gage Cannabis but withheld one key announcement for a later date.
This morning it was reported that Bruce Linton is joining Minnesota-based Vireo Health (CSE: VREO) (OTCQX: VREOF) as its new Executive Chairman. Vireo Health is described as a leading physician-led, science-focused U.S. multi-state operator that currently has licenses in 10 U.S. states as well as Puerto Rico.
As the new Vireo Executive Chairman, Linton is expected to be hands-on with the business and will also sit on the company’s board of directors. Linton will work closely with Vireo founder and CEO Kyle Kingsley, M.D. and will also be relied upon up heavily for his capital markets and deal-making expertise.
“I am delighted to be joining Vireo, one of the most exciting cannabis companies in the United States with an impressive medical and scientific team developing the next generation of cannabis products. Beyond the attractive collection of strategic assets and intellectual property that Dr. Kingsley has assembled, I have taken this role because I share the Company’s ambitious vision for the future of cannabis. We are confident Vireo can become a top U.S. producer and distributor of high-margin, proprietary products within the next several years and create unprecedented long-term shareholder value,” said Linton.
As compensation for his new role, Linton will receive three tranches of incentive warrants allowing the former Canopy boss to purchase up to 15 million Vireo subordinate voting shares.
- Tranche 1: 10 million incentive warrants with an exercise price of USD $1.02.
- Tranche 2: 2.5 million incentive warrants with an exercise price of USD $3.81.
- Tranche 3: 2.5 million incentive warrants with an exercise price of USD $5.86.
- All three tranches have an expiry date of November 7, 2024.
- The warrants will vest over the next two years with 50% vesting on November 6, 2020, and 50% on November 6, 2021.
“There is no greater endorsement than Bruce Linton joining as Executive Chairman. Bruce’s extraordinary track record in the cannabis industry speaks for itself and I am incredibly excited about the opportunity to work closely with this industry trailblazer. Furthermore, Bruce lives by our Company’s philosophy, our dedication to our customers and co-workers, and he understands the importance of giving back to the communities in which we operate,” stated Vireo founder and CEO Kyle Kingsley, M.D.
Shares of Vireo Health’s CSE listed stock soared this morning as investors reacted positively to today’s announcement. VREO stock jumped as much as 35% in early trading before settling in and closed today’s session at $1.55, up 14.81% on the day. This morning’s news triggered record trading volume for Vireo stock with over 4 million shares changing hands. Volume was up over 1,500% compared to the company’s average daily volume of 241,000 shares.
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