Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 80

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 80
---
20 trading day period ending on the trading day immediately prior to December 31, 2026 (the “Wholesome E-Commerce Earn-Out Shares” and collectively with the Wholesome EBITDA Earn-Out Shares, the “Wholesome Earn-Out Shares”).

Pursuant to separate offer letters intended to be executed and delivered by the Company and/or its applicable affiliates to be effective at the Wholesome Closing to the employees of Arches holding Arches Options as of the Wholesome Closing Date, the Company intends to offer each such person with a put right to exchange the Arches Options held by such person for a right to participate in such Arches Options’ pro rata portion of the Arches Options Earn-Out Share.

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

Wholesome Forfeiture Amount

The Wholesome stockholders will be required to forfeit the Subordinate Voting Shares received by such stockholders as Wholesome Actual Closing Merger Consideration in the event that (i) (a) the higher of (I) the consolidated trailing twelve (12) month adjusted EBITDA of Wholesome and its subsidiaries (excluding Arches) for the twelve full calendar months ending December 31, 2026, and (II) the consolidated trailing nine (9) month adjusted EBITDA of Wholesome and its subsidiaries (excluding Arches) for the last nine (9) months of calendar year 2026, such amount annualized to reflect a full 12-month period, is less than (b) ninety-six and one-half percent (96.5%) of the closing EBITDA of $16,000,000 (the absolute value of the amount of the deficiency (a) to the amount calculated in (b) if any, the “Wholesome EBITDA Deficiency”); and (ii) (a) consolidated market share in Utah of Wholesome and its subsidiaries (excluding Arches) for the year ended December 31, 2026, is less than consolidated market share in Utah of Wholesome and its subsidiaries (excluding Arches) for the year ended December 31, 2024, or (b)