Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 234

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 234
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 with WholesomeCo, Inc. (“Wholesome”), where pursuant to the Wholesome Merger Agreement, Vireo will acquire all of the issued and outstanding shares of Wholesome (the “Wholesome Merger”) in exchange for the currently estimated issuance of 130,546,789 subordinate voting shares (the “Subordinate Voting Shares”) of Vireo (subject to the clawback provisions of the Wholesome Forfeiture Amount, as defined below), representing a value of $60,051,523 (the “Merger Consideration”), plus the potential Wholesome EBITDA Earn-Out Shares and Wholesome E-Commerce Earn-Out Shares, as defined below. The number of Subordinate Voting Shares to be issued at the closing date of the Wholesome Merger (the “Wholesome Closing Date”) was calculated by dividing the value of the merger consideration as of December 18, 2024 by a share price reference of $0.52 for Vireo’s Subordinate Voting Shares. In general, the Merger Consideration is based upon a multiple of a $16,000,000 earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for certain items as described in the definition of Merger Consideration in the Wholesome Merger Agreement, including cash, indebtedness, transaction expenses, working capital, and tax items.

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At the Wholesome Closing Date, each share of the Series A common stock, par value $0.001 per share, of Wholesome (the “Wholesome Common Stock”) will be converted into the right to receive, in accordance with the terms of the Wholesome Merger Agreement, the applicable portion of the Merger Consideration, subject to a post-closing purchase price adjustment mechanism, which Merger Consideration will be paid via newly issued shares of the Company’s Subordinate Voting Shares at a share price of $0.52 per share. The holders of Wholesome Common Stock will also be eligible to receive additional Subordinate Voting Shares through earn-out mechanisms based upon the EBITDA performance of Wholesome and its subsidiaries (excluding Arches IP, Inc. (“Arches”)) (the “Wholesome EBITDA Earn-out Shares”) and the revenue performance of Arches during 2026 (the “Wholesome E-Commerce Earn-Out Shares” and together with the Wholesome EBITDA Earn-Out Shares,