Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 154

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 154
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 potential forfeiture of such Subordinate Voting Shares, in each case based on future performance of Arches.

On June 18, 2024, the Company retained Dorsey & Whitney LLP (“Dorsey”) as U.S. legal counsel in relation to the potential transactions. On June 19, 2024, the Company retained its existing Canadian securities counsel, Sangra Moller LLP, to assist in Canadian law aspects in relation to the potential transactions.

On June 25, 2024, representatives of Proper sent the Company and Chicago Atlantic a revised draft MOU. Among other things, the revised draft removed the proposed forfeiture requirement in relation to post-closing performance of Proper. On July 7, 2024, representatives of the Company sent a revised draft MOU to Proper. In addition to reinstating the forfeiture requirement, the revised draft included certain additional details regarding the proposed earn-out mechanics. Through the remainder of July, the Company, Chicago Atlantic and Proper continued to negotiate and revise the draft MOU.

On July 10, 2024, representatives of Chicago Atlantic, Deep Roots and TrueRise held a call to discuss deal structure and potential economics with respect to the acquisition of Deep Roots by the Company.

On July 17, 2024, Deep Roots and TrueRise received a transaction analysis from Chicago Atlantic and the Company providing insights into certain financial and operational implications of a proposed transaction.

On July 18, 2024, the Company and Moelis executed an engagement letter under which the Company formally engaged Moelis to assist the Company in conducting financial and business due diligence, facilitate the transaction process among the parties, and provide financial analysis to the Company and the Board.

On July 24, 2024, the Company and Chicago Atlantic delivered to Deep Roots an initial draft of a non-binding MOU. The draft largely reflected a similar approach with respect to the structural and economic construct as contained in the Proper MOU at that time.

On July 31, 2024, the Company and Proper executed the non-binding (with certain exceptions) MOU. Binding portions of the MOU included Proper granting the Company an exclusivity period through September 30, 2024, as well as a mutual confidentiality obligation. The final MOU also continued to provide for consideration to Proper equity holders payable in Company Subordinate Voting Shares, the amount of which would be determined in part upon the basis of a multiple of 4 times Proper’s EBITDA, as well as an earn-out and forfeiture mechanic