Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 113

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 113
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 Proper Companies and their subsidiaries as of the Proper Closing is less than the target working capital of $3,700,000. As of the signing of the Proper Merger Agreement, the Proper Closing Merger Consideration was estimated to be $92,620,242, which would result in 178,115,850 Subordinate Voting Shares being issued by the Company in respect of the Proper Closing Merger Consideration.

At least three (3) business days prior to the Proper Closing, Proper will provide to the Company an estimated closing statement setting forth Proper’s good faith estimated calculation of the Proper Closing Merger Consideration. The Company will issue and deliver to Proper (as described below in “Description of the Merger Agreements – Proper Mergers – Procedures for Receiving Merger Consideration”) a number of Subordinate Voting Shares equal to 90% of (i) the estimated Proper Closing Merger Consideration multiplied by (ii) the closing share price of $0.52, with such share issuance described herein as the “Proper Closing Share Payment.”

The remaining 10% of the Subordinate Voting Shares in respect of the Proper Closing Merger Consideration (the “Proper Escrow Shares”) will be delivered to Odyssey Transfer and Trust Company, in its capacity as the escrow agent (the “Proper Escrow Agent”), under an escrow agreement by and among the Company, Member Representative, and the Proper Escrow Agent (the “Proper Escrow Agreement”). The Proper Escrow Shares will be held by the Proper Escrow Agent pursuant to the Proper Escrow Agreement as a recourse of the Company in support of the purchase price adjustment mechanism described below and the indemnification obligations of the Proper Share Recipients described below in “Description of the Merger Agreements – Proper Mergers – Indemnification.” The Proper Escrow Shares that are not otherwise subject to any indemnification claims of the Company indemnified parties will be released to Proper for further distribution to the Proper Share Recipients following the date that is twenty-four months after the Proper Closing.

Within ninety (90) days of the Proper Closing Date, the Company is entitled to prepare and deliver to the Member Representative a statement setting forth the Company’s good faith calculation of the Proper Closing Merger Consideration (the “Proper Final Closing Statement”). The estimated Proper Closing Merger Consideration is subject to adjustment based upon review of the Proper Final Closing Statement by the Member Representative and the parties’ review and negotiation of any objections that the Member Representative may have with