Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 43

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 43
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1, 2025, $0, plus (iv) certain cash reserves held by Deep Roots and its subsidiaries in excess of the reserves required to be held by Deep Roots and its subsidiaries in respect of certain tax obligations, plus (v) $13,100,000 in respect of certain existing investments held by Deep Roots and its subsidiaries, less (vi) the amount of certain indebtedness of Deep Roots and its subsidiaries that will be rolled forward into the Deep Roots Surviving Corporation, less (vii) the amount of certain other indebtedness held by Deep Roots and its subsidiaries, less (viii) any shortfall in the reserves required to be held by Deep Roots and its subsidiaries in respect of certain tax obligations, less , (ix) the amount of any unpaid taxes of Deep Roots and its subsidiaries for any periods ending on or before the Deep Roots Closing Date, excluding any amounts for which Deep Roots and its subsidiaries have established cash reserves, less (x) the amount of any unpaid transaction expenses for which Deep Roots and its subsidiaries are liable under the Deep Roots Merger Agreement, plus (xi) the amount by which the working capital of Deep Roots and its subsidiaries as of the Deep Roots Closing exceeds the target working capital of $5,500,000 and less (xii) the amount by which the working capital of Deep Roots and its subsidiaries as of the Deep Roots Closing is less than the target working capital of $5,500,000. As of the signing of the Deep Roots Merger Agreement, the Deep Roots Closing Merger Consideration was estimated to be $127,524,800, which would result in 245,240,000 Subordinate Voting Shares being issued by the Company in respect of the Deep Roots Closing Merger Consideration.

At least three business days prior to the Deep Roots Closing, Deep Roots will provide to the Company an estimated closing statement setting forth Deep Roots’ good faith estimated calculation of the Deep Roots Closing Merger Consideration. The Company will issue and deliver to Odyssey Trust Company (the “Exchange Agent”) (as described below in “Description of the Merger Agreements – Deep Roots Merger – Procedures for Receiving Merger Consideration”) a number of Subordinate Voting Shares equal to 90% of (i) the estimated Deep Roots Closing Merger Consideration multiplied by (ii) the closing share price of $0.52, with such share issuance described herein as the “Deep Roots Closing Share Payment.”

The remaining 10% of the Subordinate Voting Shares in respect of the Deep