Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 47

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 47
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 TABLE OF CONTENTS
The Deep Roots Earn-Out Amount will be calculated by the Company based upon the Company’s audited financial statements for the fiscal year ending December 31, 2026, and will be subject to review by the Stockholder Representative. In the event that the Company and the Stockholder Representative are unable to resolve any disputes with respect to the Company’s calculation of the Deep Roots Earn-Out Amount, then such disputes will be submitted to the Deep Roots Independent Accountant for resolution. The fees of the Deep Roots Independent Accountant will be paid by the Company, on the one hand, and the Deep Roots stockholders, on the other hand, based upon the percentage that the amount actually contested but not awarded to the Company or the Deep Roots stockholders, respectively, bears to the aggregate amount actually contested by the Stockholder Representative and the Company.

The Deep Roots 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 “Deep Roots Earn-Out Shares”).

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

Deep Roots Forfeiture Amount

The Deep Roots stockholders will be required to forfeit the Subordinate Voting Shares received by such stockholders as Deep Roots Actual Closing Merger Consideration in the event that (i) (a) the higher of (I) the consolidated trailing twelve (12) month adjusted EBITDA of Deep Roots and its subsidiaries for the twelve full calendar months ending December 31, 2026, and (II) the consolidated trailing nine (9) month adjusted EBITDA of Deep Roots and its subsidiaries 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 and one-half percent (96.5%) of the sum of (I) the closing EBITDA of $30,000,000 plus (II) an amount of $1,000,000