Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 280

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 280
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iture Shares are expected to be recognized at fair value upon the closing of the Proper Mergers. The Company expects to finalize its assessment of the accounting treatment upon consummation of the transaction. If the Proper Earn-Out

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Shares and potential forfeitures related to the Proper Forfeiture Shares are determined to be classified as a liability and/or an asset on the balance sheet, then Vireo would recognize subsequent changes in the fair value of such items as a gain or loss at each reporting period during the Proper Earn-Out Period, pursuant to the provisions of ASC 815. Identifiable Net Assets Acquired In connection with the Proper Mergers, the Company will recognize $5,840,520 of identifiable intangible assets pertaining to certain cannabis licenses being acquired in the acquisition of the Proper Companies and $51,595,613 of additional acquired intangible assets (excluding the cannabis licenses) and goodwill, which represents the excess purchase price over fair value of identifiable net assets acquired, pursuant to the preliminary purchase price allocation. Goodwill will not be amortized, but instead will be tested for impairment at least annually or more frequently if certain indicators are present. In the event that the value of goodwill or other intangible assets become impaired in the future, an accounting charge for impairment would be recognized during the period in which the determination was made. The purchase price has been allocated to the net tangible and identifiable intangible assets and liabilities based on the respective estimated fair values and will be finalized upon the closing of the Proper Mergers. The excess of the purchase price over the net tangible and identifiable intangible assets has been recorded as goodwill. Goodwill represents potential operational synergies, various expense synergies and opportunities to enter new markets and is assigned to the Company’s cultivation, production, and sale of cannabis business segment. Wholesome Merger The estimated preliminary purchase price allocation for the Wholesome Merger and the corresponding aggregate Wholesome Merger Consideration is presented in the table below as if the Wholesome Merger closed on December 31, 2024. The purchase price allocation for the proposed Wholesome Merger is preliminary and subject to revision once the proposed Wholesome Merger is complete and as additional information about the fair value of the assets to be acquired and liabilities to be assumed becomes available. In general, due to the nature of certain assets acquired and liabilities assumed, the Company has preliminarily determined that the carrying value of these assets and liabilities as of December 31, 202