Meter Feeder: Vireo Acquires Over Half of Schwazze’s Debt
Schwazze (Medicine Man Technologies) has been one of the big multi-state players, especially in Colorado and New Mexico, buying up stores and cultivations with an aggressive roll-up strategy. But like many MSOs, they’ve been squeezed—too much debt, sagging stock price, and a brutal competitive landscape.
Vireo Growth isn’t buying Schwazze outright—not yet. They’re scooping up 86% of Schwazze’s debt, specifically senior secured convertible notes. Think of it like buying the IOUs that Schwazze owes its lenders, but at a massive discount. Instead of paying the full face value, Vireo is handing over $62 million in stock (not cash) to take control of those notes.
That gives Vireo two big levers:
Secured Debt = Priority Power. If Schwazze stumbles, Vireo’s debt position puts them at the front of the line to get paid out before equity holders.
Convertible = Equity Potential. These notes can be turned into shares. Down the line, Vireo could swap debt for ownership, giving them the keys to Schwazze without writing a traditional acquisition check.
How We Got Here
2020–2021: Schwazze goes on an acquisition binge in Colorado, swallowing up mom-and-pops.
2022–2023: New Mexico launches adult-use sales. Schwazze rushes in, betting big on expansion.
2023–2024: Market saturation hits hard. Prices drop, debt payments loom, and operational cracks show.
2024–2025: Schwazze struggles under its debt load. Its notes—once worth face value—start trading at steep discounts, signaling investors have lost confidence.
Enter Vireo.
Who is Vireo?
Vireo started in 2014 as a doctor-led medical operator out of Minnesota. Back then, they were one of the first companies to bring a clean, clinical face to an industry still shaking off its outlaw image. Over the years, they expanded cautiously into other states—New York, Maryland, Arizona, and New Mexico—with a focus on medical markets first, then adult-use when regulations shifted.
They operate under the Green Goods retail banner in Minnesota and other states, but the corporate play is broader: Vireo wants to be known as a disciplined, data-driven operator that doesn’t chase hype. Their strategy has always been to play the long game—swoop in where others gas out.
Road Map
This is a continuation of Vireo’s M&A playbook:
Acquire cheap. They’re not overpaying, they’re buying distressed assets.
Use stock, not cash. Keeps their war chest intact, avoids draining liquidity.
Strategic leverage. If Schwazze recovers, they benefit. If it collapses, Vireo has a path to seize assets at a discount.
For Schwazze’s existing shareholders? It’s a red flag. Debt holders are being put in the driver’s seat. Shareholders sit in the back, hoping Vireo doesn’t eventually drive them off a cliff.
Time Extension
On the ground in New Mexico and Colorado, this means:
Schwazze locations probably keep operating—customers won’t notice the paperwork shuffle.
Basically Vireo just put Schwazze on layaway.
They didn’t buy the company, they bought its debt at a discount, giving them first dibs on control. If Schwazze bounces back, Vireo wins. If Schwazze falters, Vireo still wins.
