Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 254

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 254
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 -56,200 |
| Income tax payable                                           |     |  -4,822,109 |
| Series B share liability                                     |     |  -8,615,935 |
| Other long-term liabilities                                  |     |  -1,434,159 |
| Total liabilities assumed                                    |     | -60,415,792 |
| Net assets acquired                                          |     | $81,933,292 |

149

TABLE OF CONTENTS

Total estimated purchase price consideration The estimated fair values of the components included in the purchase price consideration are preliminary and may materially vary from final results. The Company is still finalizing its conclusions on the accounting treatment associated with the components of the purchase consideration, along with the valuations and necessary calculations related to these components, as described in further detail below. Accordingly, for purposes of preparing the unaudited pro forma condensed combined financial information, the Company has not included an estimated amount for the ‘Contingent consideration – Proper EBITDA Earn-Out Shares’ or ‘Contingent consideration – Proper E-Commerce Earn-Out Shares’ components. In addition, the Company has assumed that the amount for the ‘Contingent consideration – Proper Forfeiture Amount’ is equal to 50% of the Merger Consideration. The final conclusions surrounding the accounting treatment, valuations, and necessary calculations for each of the components will be finalized within twelve months of the Proper Closing Date. Merger Consideration: Estimated Merger Consideration of $81,933,292 is based on the Company’s closing share price of $0.46 on February 19, 2025 multiplied by the number of Vireo Subordinate Voting Shares currently estimated to be issued of 178,115,850 (of which up to 50% of such shares are subject to the clawback provisions of the Proper Forfeiture Amount, as defined below, and is included as contingent consideration in the table above), in exchange for acquiring all of the issued and outstanding shares of the Proper Companies. The estimated value of the Merger Consideration will change based on fluctuations in the share price of the Company’s stock and final number of Vireo Subordinated Voting Shares to be issued on the Proper Closing Date. On the Proper Closing Date, 10% of the Subordinate Voting Shares (the “Proper Escrow Shares”) will be delivered to an escrow agent (the “Proper Escrow Agent”) under an escrow agreement (the “Proper Escrow Agreement”). The Proper Escrow Shares will be