Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 328

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 328
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| Lease liabilities assumed from business combination                               |     |                        8,401,321 |     |             |
| Goodwill from business combination                                                |     |                        6,537,500 |     |           — |
|                                                                                   |     |                      $35,611,679 |     |          $— |

See Accompanying Notes to the Consolidated Financial Statements B-8

TABLE OF CONTENTS

Deep Roots Holdings, Inc. and Subsidiaries Notes to the Consolidated Financial Statements December 31, 2024 and 2023

| 1. | NATURE OF OPERATIONS |

| (a) | Business Description |

Deep Roots Holdings, Inc. (“Deep Roots” or the “Company”) is an established cannabis operator licensed by the State of Nevada. The Company owns, operates, and invests in legal cannabis cultivation, processing, and retail operations. The Company is headquartered in Mesquite, Nevada. The Company operated five dispensaries and a cultivation and manufacturing facility, all of which are located in Nevada. In October 2024, as further described in Note 6, the Company acquired most of the assets of a Nevada operator, The Source Holdings, LLC, including four retail operations two provisional retail licenses and on operating facility for cultivation. On December 18, 2024, the Company entered into a definitive agreement with Vireo Growth Inc to purchase substantially all of the assets of the Company. Closing is subject to certain shareholder and regulatory approvals.

| (b) | The Regulatory Environment |

The Company’s operations are subject to a variety of local and state regulations. Failure to comply with one or more of those regulations could result in fines, restrictions on its operations, or losses of permits that could result in the Company ceasing operations. While management believes that the Company is in compliance with applicable local and state regulations as of December 31, 2024, and through the date these consolidated financial statements were issued, cannabis regulations continue to evolve and are subject to differing interpretations, and accordingly, the Company may be subject to regulatory fines, penalties or restrictions in the future. State laws that permit and regulate the production, distribution, and use of cannabis for adult use or medical purposes are in direct conflict with the Controlled Substances Act (21 U.S.C. § 811) (the “CSA”), which makes cannabis use and possession federally illegal. Although certain states and territories of the U.S. authorize medical and/or adult use cannabis production and distribution by licensed or registered entities, under