Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 226

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 226
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,098,281 (consisting of the $648,645 transaction costs accrued as of December 31, 2024 and $1,449,636 expected to be incurred after December 31, 2024) will be paid in cash at the close of the Deep Roots Merger. |

| B | Represents the following preliminary adjustments related to applying the acquisition method of accounting given the Deep Roots Merger is being accounted for as a business combination under Accounting Standards Codification (“ASC”) Topic 805,Business Combinations(“ASC 805”): |

| B1 | Represents adjustments related to: (1) the elimination of the historical Deep Roots goodwill balance of $6,415,705 given it is not an identifiable asset under ASC 805; (2) the estimated preliminary purchase price allocation for the Deep Roots Merger, including the issuance of Vireo’s Subordinate Voting Shares to legacy Deep Roots shareholders as consideration transferred; and (3) the recognition of acquired intangible assets and goodwill of $50,708,223. Refer to the table in Note 4 below for additional information related to these adjustments. |

| B2 | Represents the elimination of Deep Roots’ historical equity as a result of the business combination by: (1) reclassifying Deep Roots’ ‘Retained earnings’ balance of $52,337,972 to Additional paid-in capital; and (2) reclassifying Deep Roots’ Common stock’ balance of $100,000 to Additional paid-in capital. |

| C | Not used. |

| D | Not used. |

| E | Represents an assumed fair value of the contingent consideration for the potential forfeitures related to the Deep Roots Forfeiture Shares, as defined below. No amount has been estimated for the Deep Roots Earn-Out Shares or the Deep Roots New Retail Forfeiture Amount, as the related accounting is expected to be finalized upon consummation of the Deep Roots Merger. Refer to Note 4 for additional information related to the Deep Roots Forfeiture Shares, the Deep Roots Earn-Out Shares, and the Deep Roots New Retail Forfeiture Amount. |

Adjustments to Unaudited Pro Forma Condensed Combined Statement of Operations The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024 are as follows:

| AA | Represents estimated remaining transaction costs not already reflected in the December 31, 2024 historical financial statements of Vireo of $1,449,636