Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 81

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 81
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 2026 period annualized to reflect a full twelve (12) month period, depending on which measurement period provides the greater sum (the “Wholesome E-Commerce Revenue Amount”) minus (b) $4,000,000.

The Wholesome E-Commerce Earn-Out Amount shall be paid by the Company through the issuance of newly issued Subordinate Voting Shares at a share price of the greater of $1.05 and the 20-day volume weighted average price of such Subordinate Voting Shares during the 20 trading day period ending on the trading day immediately prior to December 31, 2026 (the “Wholesome E-Commerce Earn-Out Shares” and collectively with the Wholesome EBITDA Earn-Out Shares, the “Wholesome Earn-Out Shares”).

Pursuant to separate letter agreements intended to be executed and delivered by the Company and/or its applicable affiliates to be effective at the Wholesome Closing (or the date of such letter agreement, whichever is later) with the employees of Arches holding Arches Options, the Company will purchase, and each such holder will agree to exercise such Arches Options and a put right to exchange, the equity securities of Arches into which the Arches Options are exercisable for a right to participate in, among other things, such holder’s pro rata portion of the Arches Options Earn-Out Share.

The Subordinate Voting Shares received by the Wholesome stockholders are subject to certain customary restrictions on transfer. For additional information on such restrictions, see “Description of the Merger Agreements – Wholesome Merger – Lock-Up Letters” below. For additional information on our Subordinate Voting Shares, see “Description of the Company’s Securities” below.

Wholesome Forfeiture Amount

The Wholesome stockholders will be required to forfeit the Subordinate Voting Shares received by such stockholders as Wholesome Actual Closing Merger Consideration in the event that (i) (a) the higher of (I) the consolidated trailing twelve (12) month adjusted EBITDA of Wholesome and its subsidiaries (excluding Arches) for the twelve full calendar months ending December 31, 2026, and (II) the consolidated trailing nine (9) month adjusted EBITDA of Wholesome and its subsidiaries (excluding Arches) for the last nine (9) months of calendar year 2026, such amount annualized to reflect a full 12-month period, is less than (b) ninety-six