Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 45

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 45
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 that the amount actually contested but not awarded to the Company or the Deep Roots stockholders, respectively, bears to the aggregate amount actually contested by the Stockholder Representative and the Company. The final Deep Roots Closing Merger Consideration as determined pursuant to this paragraph is hereinafter referred to as the “Deep Roots Actual Closing Merger Consideration.”

In the event that the Deep Roots Actual Closing Merger Consideration exceeds the estimated Deep Roots Closing Merger Consideration, then the Company may elect to pay to the Deep Roots stockholders an amount in cash equal to such excess or issue additional Subordinate Voting Shares to the Deep Roots Stockholders in a number equal to the amount of such excess divided by the closing share price of $0.52. In the event that the Deep Roots Actual Closing Merger Consideration is less than the estimated Deep Roots Closing Merger Consideration, the Stockholder Representative may elect to direct (i) the Company or the Deep Roots Surviving Corporation to release to the Company an amount in cash equal to such shortfall from the Stockholder Representative Expense Fund, (ii) the Deep Roots stockholders to pay to the Company in cash the amount of such shortfall, or (iii) the Deep Roots Escrow Agent to release to the Company an aggregate number of Escrow Shares (rounded up to the nearest whole number) equal to the amount of such shortfall divided by the closing share price of $0.52, or any combination of the foregoing. The “Stockholder Representative Expense Fund” is an amount in cash equal to $500,000 that Deep Roots is required to deposit prior to the Deep Roots Closing in a separate designated account in the name of Deep Roots for use by the Stockholder Representative.

The Subordinate Voting Shares received by the Deep Roots stockholders are subject to certain customary restrictions on transfer. For additional information on such restrictions, see “Description of the Merger Agreements – Deep Roots Merger – Lock-Up Letters” below. For additional information on the Company’s Subordinate Voting Shares, please see “Description of the Company’s Securities” below.

Deep Roots Earn-Out Amount

The Deep Roots stockholders will be eligible to receive an earn-out amount (the “Deep Roots Earn-Out Amount”) subject to the satisfaction of certain EBITDA performance thresholds described below. The Deep Roots Earn-Out Amount will be calculated as an amount equal to (i) the product of four (4) multiplied by the following (which may be a positive or negative number): (a) the greater of (1) the trailing twelve (