Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 253

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 253
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 information, the Company has not included an estimated amount for the ‘Contingent consideration – Proper EBITDA Earn-Out Shares’ or ‘Contingent consideration – Proper E-Commerce Earn-Out Shares’ components. In addition, the Company has assumed that the amount for the ‘Contingent consideration – Proper Forfeiture Amount’ is equal to 50% of the Merger Consideration. The final conclusions surrounding the accounting treatment, valuations, and necessary calculations for each of the components will be finalized within twelve months of the Proper Closing Date. Merger Consideration: Estimated Merger Consideration of $81,933,292 is based on the Company’s closing share price of $0.46 on February 19, 2025 multiplied by the number of Vireo Subordinate Voting Shares currently estimated to be issued of 178,115,850 (of which up to 50% of such shares are subject to the clawback provisions of the Proper Forfeiture Amount, as defined below, and is included as contingent consideration in the table above), in exchange for acquiring all of the issued and outstanding shares of the Proper Companies. The estimated value of the Merger Consideration will change based on fluctuations in the share price of the Company’s stock and final number of Vireo Subordinated Voting Shares to be issued on the Proper Closing Date. On the Proper Closing Date, 10% of the Subordinate Voting Shares (the “Proper Escrow Shares”) will be delivered to an escrow agent (the “Proper Escrow Agent”) under an escrow agreement (the “Proper Escrow Agreement”). The Proper Escrow Shares will be held by the Proper Escrow Agent pursuant to the Proper Escrow Agreement as a recourse of the Company in support of the purchase price adjustment mechanisms stated in the Proper Merger Agreement. The Proper Escrow Shares that are not otherwise subject to any indemnification claims of the Company indemnified parties will be released to the Proper Companies stockholder following the date that is twenty-four months after the Proper Closing Date. Contingent consideration Proper EBITDA Earn-Out Shares: The Proper equityholders, and other subsequent recipients of Subordinate Voting Shares from Proper pursuant to the Proper Merger Agreement (collectively with Proper, the “Proper Share Recipients”) will be eligible to receive a potential earn-out amount (the “Proper EBITDA Earn-Out Amount”) subject to the satisfaction of certain EBITDA performance thresholds during the period beginning on the Proper Closing Date and ending on December