Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 42

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 42
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 Consideration”) calculated as described below and paid through the issuance of newly issued Subordinate Voting Shares at a closing share price of $0.52 plus; (ii) rights to a potential additional earn-out amount (the “Deep Roots Earn-Out Amount”) as described below and paid through the issuance of newly issued Subordinate Voting Shares at a share price of the greater of $1.05 and 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; less(iii) any forfeiture amounts as described below; less(iv) the potential forfeiture of $1,000,000 in the event that a specified new retail store is not operational by April 1, 2025 (the “Deep Roots New Retail Forfeiture Amount”) as described below.

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Deep Roots Acquisition Multiple

Certain of the calculations described below with respect to the consideration to be received by the Deep Roots stockholders are based upon an acquisition multiple (the “Deep Roots Acquisition Multiple”) of approximately 4.175. The Deep Roots Acquisition Multiple is calculated as the quotient of (a) the sum of (i) 245,240,000 Subordinate Voting Shares multiplied by the closing share price of $0.52, plus (ii) $20,000,000 (imputed for certain assumed indebtedness of Deep Roots and its subsidiaries to be rolled forward into the Deep Roots Surviving Corporation), less (iii) $3,000,000 (imputed for certain unrestricted cash held by Deep Roots as of the Deep Roots Closing), less (iv) $2,000,000 (imputed for cash reserves required to be held by Deep Roots and its subsidiaries in respect of certain tax obligations), less (v) $13,100,000 (imputed for certain existing investments held by Deep Roots and its subsidiaries, plus (vi) $0 (imputed for pre-closing taxes of Deep Roots and its subsidiaries net of cash reserves held by Deep Roots and its subsidiaries, divided by (b) closing EBTIDA of $30,000,000 plus $1,000,000 in respect of EBITDA generated by a new retail store.

Deep Roots Closing Merger Consideration

The Deep Roots stockholders will be entitled to receive the Deep Roots Closing Merger Consideration calculated as the sum of (i) the Deep Roots Acquisition Multiple multiplied by the closing EBITDA of $30,