Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 342

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 342
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| 6. | BUSINESS COMBINATION |

On October 24, 2024, the Company acquired four dispensaries in Las Vegas, Henderson, North Las Vegas and Pahrump, along with two provisional dispensary licenses – one in Henderson and one in the City of Las Vegas along with a provisional lounge license and a cultivation license pursuant to an Asset Purchase Agreement (“APA”), dated April 12, 2024, between Deep Roots Aria Acqco, Inc., and Deep Roots Properties, LLC, together as the Company (“The Source Purchaser”), The Source Holding LLC, and collectively with GGB Pahrump, GGB Holdco, GGB Green, GGB Nevada, GGB Nevada Land, Wellness Orchards, Nevada Organic, Sahara Merchants, NOR Oquendo Road, Henderson Organic, and Rock Canyon (“The Source Seller”). The Company has determined that the acquisitions described below are business combinations under ASC Topic 805, Business Combinations. Acquisitions that are determined to be the acquisition of a business are accounted for by applying the acquisition method, whereby the assets acquired, and the liabilities assumed are recorded at their fair values at the date of acquisition with any excess of the aggregate consideration over the fair values of the identifiable net assets allocated to goodwill. The Company completed the allocation of the purchase price of the assets acquired and liabilities assumed. The allocation of the purchase price was based upon estimates and assumptions.

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TABLE OF CONTENTS

6. BUSINESS COMBINATION (continued) The following table summarizes the accounting estimate of the acquisitions that occurred during the year ended December 31, 2024:

| Cash                          |     |     $60,000 |
| Accounts Receivable           |     |     365,885 |
| Inventory                     |     |   3,431,517 |
| Fixed Assets                  |     |   6,314,530 |
| Right-of-Use Assets           |     |   8,401,321 |
| Intangible Assets             |     |  20,541,185 |
| Lease Liabilities             |     |  -8,401,321 |
| Accounts Payable              |     |  -1,087,514 |
| Loyalty Points                |     |    -491,425 |
| Total Identifiable Net Assets |     |  29,134,178 |
| Goodwill                      |     |   6,537,501 |
| Net Assets                    |     | $35,671,679 |
| Debt