Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 242

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 242
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. On the Wholesome Closing Date, 10% of the Subordinate Voting Shares (the “Wholesome Escrow Shares”) will be delivered to an escrow agent (the “Wholesome Escrow Agent”) under an escrow agreement (the “Wholesome Escrow Agreement”). The Wholesome Escrow Shares will be held by the Wholesome Escrow Agent pursuant to the Wholesome Escrow Agreement as a recourse of the Company in support of the purchase price adjustment mechanisms stated in the Wholesome Merger Agreement. The Wholesome Escrow Shares that are not otherwise subject to any indemnification claims of the Company indemnified parties will be released to the Wholesome stockholders following the date that is twenty-four months after the Wholesome Closing Date. Contingent consideration: Wholesome EBITDA Earn-Out Shares: Pursuant to the Wholesome Merger Agreement, the Wholesome stockholders will be eligible to receive a potential earn-out amount (the “Wholesome EBITDA Earn-Out Amount”) subject to the satisfaction of certain EBITDA performance thresholds during the period beginning on the Wholesome Closing Date and ending on December 31, 2026 (the “Wholesome Earn-Out Period”). The Wholesome Earn-Out Amount will be calculated as an amount equal to (i) the product of four multiplied bythe following (which may be a positive or negative number):

| (a) | the greater of (1) the trailing twelve month adjusted EBITDA of Wholesome and its subsidiaries (excluding Arches) for the twelve calendar months ending December 31, 2026 and (2) the trailing nine month adjusted EBITDA of Wholesome and its subsidiaries (excluding Arches) for the last nine months of calendar year 2026, with such amount annualized to reflect a full 12-month period, minus |

| (b) | the closing EBITDA of $20,000,000,minus(ii) the aggregate amount of any indebtedness for borrowed money incurred by Wholesome or its subsidiaries (excluding Arches) after the Wholesome Closing Date,plus(iii) the amount of any cash remaining in a stockholder representative expense fund (the “Wholesome Stockholder Representative Expense Fund”),plus(iv) certain tax refund amounts held for the benefit of the Wholesome stockholders pursuant to the Wholesome Merger Agreement. |

The Wholesome EBITDA Earn-Out Amount shall be