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Schwazze Reaches Agreement to Restructure its Balance Sheet and Portfolio of Assets

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Schwazze (OTC: SHWZ) entered a Restructuring Support Agreement on Oct 14, 2025 to sell a majority of its assets to a newly formed NewCo majority-owned by Vireo, pursue an auction with a collateral-agent credit bid, and wind down remaining operations.

The plan contemplates NewCo assuming specified liabilities and discharging all or a majority of the Company’s 13% senior secured notes due Dec 7, 2026, and up to approximately $62 million in financing to refinance seller notes, cover transaction costs, and provide working capital. Closing is subject to regulatory approvals and other conditions.

Schwazze (OTC: SHWZ) ha stipulato un Accordo di supporto al ristrutturamento il 14 ottobre 2025 per vendere la maggior parte dei suoi asset a una nuova NewCo controllata dalla maggioranza da Vireo, perseguire un'asta con un'offerta di credito da parte di un agente collaterale e ridurre le operazioni residue.

Il piano prevede che NewCo assuma determinate passività e estinga integralmente o in parte le note garantite senior al 13% in scadenza il 7 dicembre 2026, e fino a circa 62 milioni di dollari di finanziamenti per rifinanziare note del venditore, coprire i costi della transazione e fornire capitale circolante. La chiusura è soggetta ad approvazioni normative e ad altre condizioni.

Schwazze (OTC: SHWZ) firmó un Acuerdo de Apoyo a la Reestructuración el 14 de octubre de 2025 para vender la mayoría de sus activos a una nueva NewCo mayoritariamente propiedad de Vireo, perseguir una subasta con una oferta de crédito de un agente de garantías y liquidar las operaciones restantes.

El plan contempla que NewCo asuma ciertas deudas y cancele total o mayoritariamente las notas garantizadas senior del 13% con vencimiento el 7 de diciembre de 2026, y hasta aproximadamente 62 millones de dólares en financiamiento para refinanciar las notas del vendedor, cubrir costos de la transacción y proporcionar capital de trabajo. El cierre está sujeto a aprobaciones regulatorias y otras condiciones.

Schwazze (OTC: SHWZ)2025년 10월 14일에 구조조정 지원 계약(Restructuring Support Agreement)을 체결하여 다수의 자산을 Vireo가 대다수를 소유한 신규 법인 NewCo에 매각하고, 담보 대리인의 신용 역경매를 통해 경매를 추진하며 남은 사업을 축소하려고 합니다.

계획은 NewCo가 특정 부채를 인수하고 2026년 12월 7일 만기 13% 선순위 보증채를 전부 또는 다수의 면에서 상환하며, 매도자 채권을 재융자하고 거래 비용을 충당하며 운전자본을 확보하기 위해 약 6200만 달러의 자금을 조달하는 것을 포함합니다. 마감은 규제 승인 및 기타 조건에 달려 있습니다.

Schwazze (OTC: SHWZ) a conclu un Accord de soutien à la restructuration il 14 octobre 2025 pour vendre la majorité de ses actifs à une nouvelle NewCo majoritairement détenue par Vireo, poursuivre une vente aux enchères avec une offre de crédit d'un agent de collatéral et mettre fin à ses opérations restantes.

Le plan prévoit que NewCo assume certaines responsabilités et rembourse intégralement ou en grande partie les obligations garanties seniors du 13% arrivant à échéance le 7 décembre 2026, et jusqu'à environ 62 millions de dollars de financement pour refinancer les notes du vendeur, couvrir les coûts de la transaction et fournir du fonds de roulement. La clôture est soumise à des approbations réglementaires et à d'autres conditions.

Schwazze (OTC: SHWZ) hat am 14. Oktober 2025 eine Restrukturierungsunterstützungsvereinbarung (Restructuring Support Agreement) unterzeichnet, um den Großteil seiner Vermögenswerte an eine neu gegründete NewCo zu verkaufen, die mehrheitlich von Vireo gehalten wird, eine Auktion mit einem Kreditangebot eines Sicherungsagenten zu verfolgen und die verbleibenden Betriebe stillzulegen.

Der Plan sieht vor, dass NewCo bestimmte Verbindlichkeiten übernimmt und alle oder überwiegend die 13%-ige vorrangige besicherte Anleihe fällig am 7. Dezember 2026 tilgt, sowie bis zu etwa 62 Millionen US-Dollar an Finanzierung bereitstellt, um Verkäuferanleihen zu refinanzieren, Transaktionskosten zu decken und Betriebskapital bereitzustellen. Der Abschluss steht unter behördlicher Genehmigung und anderen Bedingungen.

Schwazze (OTC: SHWZ) أبرمت اتّفاق دعم إعادة الهيكلة في 14 أكتوبر 2025 لبيع غالبية أصولها إلى شركة جديدة NewCo مملوكة في الغالب من قبل Vireo، والسعي لإجراء مزاد مع عرض ائتماني من وكيل الضمان، وشطب العمليات المتبقية.

يخطط الهدف إلى أن تتولى NewCo بعض الالتزامات وتسدّ جميع أو غالبية السندات المضمونة senior ذات الفائدة 13% والمعتملة في 7 ديسمبر 2026، وحتى ما يقرب من 62 مليون دولار من التمويل لإعادة تمويل سندات البائع، وتغطية تكاليف المعاملة وتوفير رأس مال عامل. الإغلاق خاضع للموافقات التنظيمية وشروط أخرى.

Schwazze (OTC: SHWZ)2025年10月14日 签署了结构性重组支持协议(Restructuring Support Agreement),以将其大部分资产出售给由 Vireo 大股东控股的新设立公司 NewCo,追求由抵押品代理人出具信用出价的拍卖,并逐步停运剩余业务。

计划包括 NewCo 承担特定负债并偿付全部或大部分公司13% 的高级担保票据,到期日为 2026 年 12 月 7 日,以及大约 6200 万美元 的融资,用于再融资卖方票据、覆盖交易成本并提供营运资金。交易完成需获得监管批准及其他条件。

Positive
  • $62 million financing available to NewCo
  • Sale of a majority of total assets to NewCo
  • Potential discharge of all or majority of 13% senior secured notes
  • Plan aims for less debt and improved liquidity
Negative
  • Remaining Company operations will be liquidated and wound down
  • Completion depends on regulatory approvals and auction outcome
  • Equity holders receive net wind‑down proceeds only if any

DENVER, Oct. 14, 2025 (GLOBE NEWSWIRE) -- Medicine Man Technologies, Inc., operating as Schwazze (OTC: SHWZ) (Cboe CA: SHWZ) (“Schwazze” or the “Company”), announced it has entered into a Restructuring Support Agreement (“RSA”) with an affiliate of Vireo Growth Inc. (“Vireo”), which holds a majority of the Company’s outstanding 13% senior secured notes due December 7, 2026 (“Senior Secured Notes”), the holders of certain outstanding deferred cash seller notes (the "Star Buds seller notes") and certain other parties.

The RSA sets forth a plan to restructure the operations and capital structure of the Company and its subsidiaries through a series of transactions, including, but not limited to, the sale of certain assets representing a majority of the total assets of the Company and its subsidiaries (the "Asset Sale") to a newly-formed entity ("NewCo") to be majority-owned by Vireo, and the liquidation and winding down of the Company's remaining operations. The landmark transactions contemplated by the RSA are expected to result in the continuation of our business as a new, growth-oriented company with less debt, improved liquidity and a streamlined asset portfolio.

Pursuant to the RSA, the collateral agent under the indenture governing the Senior Secured Notes, acting at the direction of Vireo, will submit a credit bid at an auction contemplated to be held in connection with the Asset Sale. If the credit bid is successful, the Company will enter into an asset purchase agreement with NewCo pursuant to which, subject to receipt of regulatory approvals and other closing conditions, the assets subject to the Asset Sale would be transferred to NewCo in consideration for an assumption by NewCo of certain specified liabilities of the Company and a discharge of all or a majority of the Senior Secured Notes. Certain parties have also agreed to provide NewCo with up to approximately $62 million in financing, the proceeds of which will be used to refinance the Star Buds seller notes, pay transaction expenses and provide NewCo with working capital.

Any remaining assets of the Company not purchased in the Asset Sale would be subject to a wind down, and the remaining liabilities of, and equity interests in, the Company will receive the net proceeds (if any) from the wind down proceedings in accordance with their relative priorities under applicable law.

Further information about the RSA and the contemplated transactions is included in a Current Report on Form 8-K being filed today by the Company with the U.S. Securities and Exchange Commission (“SEC”).

"Today's announcement represents a pivotal milestone in our journey to build a stronger, more agile organization," said Forrest Hoffmaster, Schwazze Chief Executive Officer. "This structure positions us to deliver exceptional value to our customers, employees, and partners. Vireo's support and commitment demonstrate strong confidence in our management team's strategic vision and our ability to capitalize on market consolidation opportunities. We are excited about the path forward and the significant potential this partnership creates."

Completion of the transactions contemplated by the RSA are subject to certain conditions, including regulatory approval where applicable.

The Company is represented by Polsinelli PC as its legal counsel, and Oppenheimer & Co. Inc., as its financial advisor.

Contact
Mark Joachim (mjoachim@polsinelli.com)
Bruce Buchanan (Bruce.Buchanan@opco.com)

About Schwazze

Schwazze (OTC: SHWZ) (Cboe CA: SHWZ) is a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.

Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company's leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.

Medicine Man Technologies, Inc. was Schwazze's former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth. To learn more about Schwazze, visit https://schwazze.com/.

Forward-Looking Statements

Certain statements contained in this news release constitute “forward-looking statements” within the meaning of applicable securities laws. Statements that are not historical fact are forward-looking statements. Certain of these forward-looking statements can be identified by the use of words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “estimates,” “assumes,” “may,” “should,” “could,” “would,” “shall,” “will,” “seeks,” “targets,” “future,” or other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors, and our actual results, performance or achievements could differ materially from future results, performance or achievements expressed in these forward-looking statements, including statements regarding the anticipated benefits of the transactions contemplated by the RSA and other statements that are not historical facts. The description of the RSA and the transactions contemplated therein contain forward-looking statements. There are several risks, uncertainties, and other important factors, many of which are beyond the Company’s control, that could cause its actual results to differ materially from the forward-looking statements, including risks involved with the adverse impact of the transactions contemplated by the RSA on the Company’s business, financial condition, and results of operations; the Company’s ability to successfully consummate the transactions contemplated by the RSA, including ultimately satisfying the conditions and RSA Milestones set forth therein; the Company’s ability to make the required payments under the agreements governing its current debt obligations; the Company’s ability to maintain relationships with suppliers, customers, employees and other third parties as a result of the transactions contemplated by the RSA; the effects of the transactions contemplated by the RSA on the Company and the interests of various constituents; risks and uncertainties associated with the transactions contemplated by the RSA, some of which are beyond the Company’s control; subject to the successful outcome of the transactions contemplated by the RSA, the nature, cost, impact and outcome of pending and future litigation, other legal or regulatory proceedings, or governmental investigations and actions; as well as the other risks described in the “Risk Factors” section of the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other documents filed from time to time with the SEC by the Company. The transactions contemplated by the RSA remain subject to material conditions, including negotiation of definitive agreements satisfactory to all parties thereto and satisfaction of all conditions thereto, and there can be no assurance that the Company will be successful in completing the transactions contemplated by the RSA or any other similar transaction on the terms described herein, on different terms, or at all. This news release does not constitute an offer to sell or buy, nor the solicitation of an offer to sell or buy the securities referred to herein.


FAQ

What did Schwazze (SHWZ) announce on October 14, 2025?

Schwazze announced an RSA to sell a majority of assets to a NewCo majority-owned by Vireo and to wind down remaining operations, subject to approvals.

How much financing will NewCo receive under the Schwazze restructuring?

Certain parties agreed to provide NewCo with up to approximately $62 million for refinancing, transaction expenses, and working capital.

What happens to Schwazze’s 13% senior secured notes (SHWZ)?

The RSA contemplates a credit bid and asset sale under which NewCo could assume liabilities and discharge all or a majority of the 13% senior secured notes due Dec 7, 2026.

Will Schwazze continue operating after the asset sale?

The company expects continuation as a new, growth-oriented business for assets sold to NewCo; any remaining assets will be wound down and liquidated.

What conditions must be satisfied for the Schwazze transactions to close?

Closings are subject to an auction outcome, regulatory approvals where applicable, and other customary closing conditions.

How will Schwazze equity holders be affected by the RSA?

Equity interests will receive any net proceeds from the wind down, in accordance with legal priorities, which could be limited depending on liabilities.
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