California startup once valued at $700M sells for shockingly low price

OG article by Lester Black

January 6, 2026

Vireo Growth Inc. has acquired Eaze, a prominent California cannabis delivery service once valued at $700 million, for $47 million in an all-stock deal encompassing operations in California, Florida, and Colorado. California assets represent about 25% of the transaction.

Eaze encountered past issues, including a 2021 executive's guilty plea in bank fraud, expansion mergers, and a 2024 foreclosure auction sale for $54 million to a firm tied to billionaire James Henry Clark, who then resold to Vireo. Leadership assures no immediate customer changes in California.

This deal joins recent consolidations like Stiiizy's $25 million retail acquisition and Nabis' $13 million distribution purchase. Experts link increased activity to President Trump's federal rescheduling directive, easing tax burdens and renewing investor confidence.

Analysts note California's market, battered by closures and high costs, now appears attractive for mergers. Investors express optimism, anticipating further transactions to build resilient operations amid regulatory pressures.