Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 337

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 337
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, 2024 and 2023, respectively.

| 5. | NOTE RECEIVABLE |

The Company had a note receivable due from a third party that was issued in connection with the third party’s refinancing of its mortgage. As part of the refinance, the third party entered into a secured promissory note in the amount of $5,000,000 due to the Company with an annual interest rate of 17.25% and maturity date of September 13, 2024. In October 2024, the interest portion of the note receivable was refinanced at 18.25%. The interest income totaled $919,790 for the year ended December 31, 2024. The Company has fully reserved for this amount as collectability is uncertain as of December 31, 2024. In December 2024, the principal amount of $5,000,000 was converted to equity in exchange for preferred units in the underlying investment.

| 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