Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 78

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 78
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 (which may be a positive or negative number): (a) the greater of (1) the trailing twelve (12) month adjusted EBITDA of Wholesome and its subsidiaries (excluding Arches) for the twelve (12) calendar months ending December 31, 2026 and (2) the trailing nine (9) month adjusted EBITDA of Wholesome and its subsidiaries (excluding Arches) for the last nine (9) months of calendar year 2026, with such amount annualized to reflect a full 12-month period, minus (b) the closing EBITDA of $16,000,000, 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 the Stockholder Representative Expense Fund, plus (iv) certain tax refund amounts held by the Wholesome Surviving Corporation for the benefit of the Wholesome stockholders pursuant to the Wholesome Merger Agreement. From the Wholesome Closing through December 31, 2026, the Company is subject to certain limited covenants with respect to the operation of the Wholesome Surviving Corporation and the listing of the Company’s Subordinate Voting Shares.

The Wholesome EBITDA Earn-Out Amount will be calculated by the Company based upon the Company’s audited financial statements for the fiscal year ending December 31, 2026, and will be subject to review by the Stockholder Representative. In the event that the Company and the Stockholder Representative are unable to resolve any disputes with respect to the Company’s calculation of the Wholesome EBITDA Earn-Out Amount, then such disputes will be submitted to the Wholesome Independent Accountant for resolution. The fees of the Wholesome Independent Accountant will be paid by the Company, on the one hand, and the Wholesome stockholders, on the other hand, based upon the percentage that the amount actually contested but not awarded to the Company or the Wholesome stockholders, respectively, bears to the aggregate amount actually contested by the Stockholder Representative and the Company.

The Wholesome EBITDA Earn-Out Amount shall be paid by the Company 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