Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 356

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 356
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 was $152,274 and $201,015.

The lenders of the line of credit and related-party promissory note have entered into a subordination and intercreditor agreement with the term loan lender, providing that the line of credit and related-party promissory note are subordinate to the term loan.

#### Related-Party Promissory Note
The Company entered into a term loan promissory note (Term Loan Promissory Note) with a related party on March 30, 2022 for $4,430,000. Interest accrues at a rate of 10% per annum and is due monthly. Repayment of principal and interest begins on March 30, 2023. The term loan matures on March 31, 2027. As of December 31, 2024 and 2023, the balance on the Term Loan Promissory Note was $996,305 and $1,372,204, respectively.

The Term Loan Promissory Note is collateralized against substantially all the Company’s assets and is subject to certain covenants. As of December 31, 2024, management believes the Company is in compliance with all covenants.

In connection with the execution of the Term Loan Promissory Note the Company issued 1,542,272 Class A Common warrants with an exercise price of $0.01. The Company determined that the warrants were an equity instrument representing a debt discount to be amortized over the term of the agreement. Amortization of the debt discount was $141,889 and $141,889 for the years ended December 31, 2024 and 2023, respectively, and is included in interest expense on the consolidated statements of income. At inception the value of the warrants was $713,744. As of December 31, 2024 and 2023, the unamortized portion of the debt discount was $364,638 and $506,527.

#### Vehicle Loans
The Company has various vehicle loans for vehicles used in the Company’s operations. All of the loans mature in 2026. Interest accrues at a rate of 3.20% - 4.99% per annum and principal and interest payments are due monthly. Payments range from $362 to $507. During 2024, the vehicles that secured the loans were traded to the dealership to satisfy the outstanding loans. As of December 31, 2024 and 2023, the balance on the vehicle loans was $