Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 384

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 384
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3, respectively.

| NOTE 15: | ROYALTY AND SUBLET INCOME |

The Company licenses Intellectual Property from, and leases space to Northwest Confections Missouri, LLC (Wyld) for the production of Marijuana Edible products and packaging supply storage. In addition to rents collected, the Company also collects a monthly royalty based on Wyld meeting various sales benchmarks. Rental Income was $213,420 and $134,808 and Royalty Income was $428,915 and $137,666 for the years ended December 31, 2024 and 2023, respectively.

B-59

TABLE OF CONTENTS

| NOTE 16: | ACQUISITION |

On February 7, 2024, the Company completed the acquisition of SLCC, LLC, a single dispensary operation located in Kansas City, MO. The following table presents the fair value of the assets acquired and liabilities assumed as of the acquisition date and allocation of the consideration to net assets acquired:

| Inventory                                                     |     |   $325,538 |
| Licenses                                                      |     |  4,349,530 |
| Right-of Use Assets                                           |     |    542,851 |
| Accounts Payable                                              |     |    -40,621 |
| Other Liabilities Assumed                                     |     |   -166,559 |
| Operating Lease Liabilities                                   |     |   -560,024 |
| Working Capital Adjustment                                    |     |     17,173 |
| Net Assets Acquired                                           |     | $4,467,888 |
| Consideration paid in Cash, Net of Working Capital Adjustment |     | $4,467,888 |

| NOTE 17: | AFFILIATES |

The following information presents information regarding affiliates that been determined to be a Variable Interest Entity (VIE) which are included in the consolidated financial statements. All of these entities were determined to be VIEs as the Company possesses the power to direct activities through a Manage Service Agreement (MSA). (See Note 3 – Deposits, Note 4 - Notes Receivable and Note 18 – Commitments). On July 6, 2023, the Company entered into a Member Interest Purchase Agreement with the Members of Nirvana Investments LLC and all subsidiaries and a Management Service Agreement of Nirvana Investments LLC. The purchase agreement has not closed as of December 31, 2024. On February 14, 2024, the Company entered into an Asset Purchase Agreement and a Management Service Agreement with Occ