Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 358

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 358
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 and promissory notes (see Notes 5 and 6). The Company has issued an aggregate 3,516,973 warrants. Prior to 2022, 1,974,701 warrants were exercised at their exercise price of $0.01. No warrants were exercised in 2023 or 2024. Arches Series 2 Preferred Stock Embedded Conversion Feature During 2024, Arches issued 2,273,362 shares of Series 2 preferred stock to a noncontrolling interest investor in exchange for $1,400,000. The Series 2 preferred stock has an embedded conversion that allows the holder of the Series 2 preferred stock to convert to common stock. The Series 2 preferred stock had an original issue price of $0.61528. If the holder of the Series 2 preferred stock achieves certain accretive market share revenue as defined in the operating agreement from use of the Arches software platform the conversion price will ratchet down to $0.501785, $0.457923, $0.387743, and $0.334076 depending on the level of increase in accretive market share revenue. The Company determined this conversion feature is a derivative liability within the scope of ASC 815, Derivatives and Hedging; however, as of December 31, 2024, the Company determined it had an immaterial value. Downround Protection – Arches Preferred Stock The certificate of incorporation for Arches provides that if Arches sells common stock at a price that is lower than any of current conversion prices of the Series Preferred stock, then the conversion price will be reduced to a price based upon a broad-based weighted average formula in the Arches’ Certificate of Incorporation. This feature is frequently referred to as “down-round protection.” The Company has determined this embedded conversion option is more akin to equity and has not recorded a liability for the instrument as of December 31, 2024.

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TABLE OF CONTENTS

Stock Options WholesomeCo Equity Incentive Plan The WholesomeCo 2020 Equity Incentive Plan (the Plan) includes incentive stock options, nonqualified stock options, restricted stock and restricted stock units (collectively, Awards) to be granted to employees, consultants and directors of the Company. A total of 2,179,282 shares have been authorized for issuance under this Plan and 433,896 shares remain available to be issued under the Plan. The exercise price of the Awards is determined by the