Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Security Interest topic
No spam. Unsubscribe anytime.
CCB approves loan collateral for Vireo Growth; licenses remain subject to suitability review
Summary
The board approved a security interest under loan documents between Vireo Growth (parent of DeepRoots licensees) and lenders including East West Bank and Western Alliance, with counsel stressing that any foreclosure would require CCB suitability and license-transfer review.
The Nevada Cannabis Compliance Board approved a proposed security interest under loan documents between Vireo Growth Inc. (the public parent of DeepRoots licensees) and several lenders, clearing a path for the financing while preserving CCB oversight in any foreclosure or suitability event.
Rachel Branner of CCB staff introduced the item and said staff found no areas of concern that would prevent approval. Lori Rogich, counsel for Vireo and DeepRoots, told the board the lenders do not plan to convert debt into equity and there is no conversion mechanism in the agreements; remedies would be limited to enforcing the security interest and recovering the debt, not equity participation. “The licensees retain full operational control,” Rogich said, adding that any foreclosure or license transfer would require a return to the CCB for suitability review.
East West Bank representatives (including lead counsel Gus Stickley) confirmed East West would act as agent for the lenders. Member Merritt disclosed employment at Western Alliance Bank; after consultation with counsel he did not abstain, explaining he is not directly involved in the loan operations under consideration. Member Messerano moved to approve the security interest, the motion was seconded and the board carried the approval.
The action permits the lenders to use DeepRoots’ Nevada licenses as collateral under the loan and requires the parties to seek CCB approval before any license transfer resulting from enforcement.
