Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 263

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 263
---
.52 for Vireo’s Subordinate Voting Shares. In general, the Wholesome Merger Consideration is based upon a multiple of a $16,000,000 EBITDA, adjusted for certain items as described in the definition of Wholesome Merger Consideration in the Wholesome Merger Agreement, including cash, indebtedness, transaction expenses, working capital, and tax items.

At the Wholesome Closing Date, each share of the Series A common stock, par value $0.001 per share, of Wholesome (the “Wholesome Common Stock”) will be converted into the right to receive, in accordance with the terms of the Wholesome Merger Agreement, the applicable portion of the Wholesome Merger Consideration, subject to a post-closing purchase price adjustment mechanism, which Wholesome Merger Consideration will be paid via newly issued shares of the Company’s Subordinate Voting Shares at a share price of $0.52 per share. The holders of Wholesome Common Stock will also be eligible to receive additional Subordinate Voting Shares through earn-out mechanisms based upon the EBITDA performance of Wholesome and its subsidiaries (excluding Arches) (the “Wholesome EBITDA Earn-out Shares”) and the revenue performance of Arches during 2026 (the “Wholesome E-Commerce Earn-Out Shares” and together with the Wholesome EBITDA Earn-Out Shares, the “Wholesome Earn-Out Shares”).

The Mergers

The Mergers will be accounted for as business combinations in accordance with U.S. GAAP, with management concluding Vireo is the accounting acquirer.

The following unaudited pro forma condensed combined financial information presents the combination of the financial information of Vireo, Deep Roots, the Proper Companies, and Wholesome adjusted to give effect to the Mergers and related transactions. The following unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X as amended by the final rule, Release No. 33-10786 “Amendments to Financial Disclosures about Acquired and Disposed Businesses.”

The following unaudited pro forma condensed combined financial information is based on the historical financial statements of Vireo, Deep Roots, the Proper Companies, and Wholesome, all of which have December 31 fiscal year ends, as adjusted to give effect to the Mergers and related transactions. The unaudited pro forma condensed