Minneapolis-based Vireo Health International said it has filed a preliminary prospectus in Canada to sell as much as 260 million Canadian dollars ($200 million) in securities if and when market opportunities permit.
Such a shelf offering doesn’t mean a company will sell the securities, but it gives a business the option when market conditions are ripe to do so.
Vireo’s prospectus is just preliminary and hasn’t yet become final for the purpose of actually selling the securities.
“Our balance sheet continues to strengthen, and we believe we have ample flexibility to continue executing our strategy pushing toward producing positive cash flow from operations,” Vireo CEO Kyle Kingsley said in a news release.
“This prospectus ensures that we are able to take advantage of a favorable equity market in the event that additional capital is deemed necessary in the future.”
The specific terms of any offering, and a description of how the proceeds will be used, will be set forth in a supplement filed with Canadian securities regulators.
Vireo said it filed the preliminary prospectus with securities regulators in every province of Canada with the exception of Quebec.
Vireo has operations in several key U.S. markets, including Arizona, New York and Pennsylvania.
The company generated $10.8 million in revenue for its second quarter ended June 30, up from $6.7 million in the same period of 2019. Vireo plans to release its third-quarter results on Nov. 25.
Vireo trades on the Canadian Securities Exchange under the ticker symbol VREO and on U.S. over-the-counter markets as VREOF.