Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 244

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 244
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 amount of the deficiency (a) to the amount calculated in (b) if any, the “Wholesome EBITDA Deficiency”); and (ii) (a) consolidated market share in Utah of Wholesome and its subsidiaries (excluding Arches) for the year ending December 31, 2026 is less than consolidated market share in Utah of Wholesome and its subsidiaries (excluding Arches) for the year ended December 31, 2024, or (b) the consolidated EBITDA margin of Wholesome and its subsidiaries (excluding Arches) for the year ending December 31, 2026 is less than the consolidated EBITDA margin of Wholesome and its subsidiaries (excluding Arches) for the year ended December 31, 2024; and (iii) the 20-day volume weighted average price of such Subordinate Voting Shares immediately prior to the end of the Wholesome Earn-Out Period is greater than $1.05 per Subordinate Voting Share.

In the event that the foregoing occurs, the Wholesome stockholders will be required to forfeit an aggregate number of Subordinate Voting Shares to the Company equal to the Wholesome Forfeiture Amount (as defined below) divided by the closing share price of $0.52, with such forfeited shares capped at fifty percent of the total Subordinate Voting Shares issued as Wholesome Actual Closing Merger Consideration (the “Wholesome Forfeiture Shares”). The Wholesome Forfeiture Amount will be calculated as an amount equal to the sum of (i) the product of the Wholesome acquisition multiple multiplied by the Wholesome EBITDA Deficiency, plus (ii) the aggregate amount of any indebtedness for borrowed money incurred by Wholesome or its subsidiaries after the Wholesome Closing Date, minus (iii) the amount of any cash remaining in the Wholesome Stockholder Representative Expense Fund, and minus (iv) certain tax refund amounts held for the benefit of the Wholesome stockholders pursuant to the Wholesome Merger Agreement.

The accounting treatment of the Wholesome Earn-Out Shares and potential forfeitures related to the Wholesome Forfeiture Shares are expected to be recognized at fair value upon the closing of the Wholesome Merger. The Company expects to finalize its assessment of the accounting treatment upon consummation of the transaction. If the Wholesome Earn-Out Shares and potential forfeitures related to the Wholesome Forfeiture Shares