Company: VREOF
Filing Date: 2025-06-06
Form Type: 8-K
Source: 0001104659-25-057335
Chunk: 4

Company: Vireo Growth Inc.
Filing Date: 2025-06-06
Form: 8-K
Item: Item 2.01
Chunk 4
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 of shares subject to a clawback would be equal to the Acquisition Multiple multiplied by the EBITDA Deficiency, adjusted for
incremental debt and certain other matters, divided by $0.52 per share.

Pursuant to the Merger Agreement, Holdings entered into a lock-up agreement
with the Company providing that, for a period of up to 33 months, Holdings may not, subject to customary exceptions, offer, issue, sell,
transfer or otherwise dispose of, or enter into certain arrangements that transfer any of the economic consequences of the ownership of,
the Parent Shares issued pursuant to the Mergers without the prior written consent of the Company. The lock-up agreements provide that
the Parent Shares acquired by Holdings pursuant to the Merger Agreement as Total Merger Consideration shares are subject to a lock-up
release schedule of 7.5% 12-months after the Closing Date, 10% at each of 18-months and 21-months after the Closing Date, 17.5% 24-months
after the Closing Date, 15% 27-months after the Closing Date and 20% at each of 30-months and 33-months after the Closing Date. In addition,
all such Parent Shares held by such persons are subject to lock-up during the 6-month period ending December 31, 2026. In addition, any
Parent Shares issued in connection with the earn-out payments described above will be subject to lock-up periods following the issuance
of such earnout shares, with a 20% release per quarter ending at 15 months post-issuance. Upon the determination of the Actual Closing
Merger Consideration, Holdings may distribute the Parent Shares received as the Closing Share Payment to the Parent Share Recipients,
and each Parent Share Recipient to which Holdings distributes Parent Shares will be required to enter into a substantially similar lock-up
agreement.

Vireo’s Chief Executive Officer, John Mazarakis, serves as a
partner of Chicago Atlantic Group, LP, which is an affiliate of Chicago Atlantic Admin, LLC (the “ Agent”), which is the senior
secured lender for Holdings and its affiliates (including the Acquired Companies). Given his ownership interest in the Agent and its affiliates,
Mr. Mazarakis has an approximate 29% interest in the Acquired Companies’ debt transactions with the Agent. The Acquired Companies
have aggregate outstanding net debt with the Agent and/or its affiliates of approximately $27,400,000