Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 116

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 116
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 EBITDA of $31,000,000 (the absolute value of the amount of the deficiency (a) to the amount calculated in (b) if any, the “Proper EBITDA Deficiency”); and (ii) (a) consolidated market share in Missouri of the Proper Companies and their subsidiaries for the year ended December 31, 2026 is less than consolidated market share in Missouri of the Proper Companies and their subsidiaries for the year ended December 31, 2024, or (b) the consolidated EBITDA margin of the Proper Companies and their subsidiaries for the year ended December 31, 2026 is less than the consolidated EBITDA margin of the Proper Companies and their subsidiaries for the year ended December 31, 2024; and (iii) the 20-day volume weighted average price of such Subordinate Voting Shares during the 20 trading day period ending on the trading day immediately prior to December 31, 2026 is greater than $1.05 per Subordinate Voting Share. In the event that the foregoing occurs, the Proper Share Recipients will be required to forfeit an aggregate number of Subordinate Voting Shares to the Company equal to the Proper Forfeiture Amount divided bythe closing share price of $0.52, with such forfeited shares capped at fifty percent (50%) of the total Subordinate Voting Shares issued as Proper Actual Closing Merger Consideration (excluding for this purpose any Subordinate Voting Shares issued as consideration for the Proper Arches Shares). The “Proper Forfeiture Amount” will be calculated as an amount equal to the sum of (i) the product of the Proper Acquisition Multiple multiplied bythe Proper EBITDA Deficiency, plus(ii) the aggregate amount of any indebtedness for borrowed money incurred by the Proper Companies or their subsidiaries after the Proper Closing Date, minus(iii) the amount of any cash remaining in the Proper Member Representative Expense Fund, and minus(iv) certain tax refund amounts held by the Proper Surviving Corporation for the benefit of the Proper Share Recipients pursuant to the Proper Merger Agreement. The “Proper Member Representative Expense Fund” is an amount in cash equal to $100,000 that Proper is required to deposit with the Member Representative for use by the Member Representative. The Proper Earn-Out Amount plusthe Proper Actual Closing Merger Consideration minusthe Proper Forfeiture Amount is hereinafter referred to as the “Proper Total Merger Consideration.” Lock-Up Letters As an additional condition to receiving