Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 82

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 82
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 and one-half percent (96.5%) of the closing EBITDA of $16,000,000 (the absolute value of the 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 ended 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 ended 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 during the 20 trading day period ending on the trading day immediately prior to December 31, 2026 is greater than $1.05 per Subordinate Voting Share.

In the event that the foregoing occur, the Wholesome stockholders will be required to forfeit an aggregate number of Subordinate Voting Shares to the Company equal to the Wholesome Forfeiture Amount divided by the closing share price of $0.52, with such forfeited shares capped at fifty percent (50%) of the total Subordinate Voting Shares issued as Wholesome Actual Closing Merger Consideration (excluding for this purpose any Subordinate Voting Shares issued as consideration for the Wholesome Arches Shares). The “Wholesome 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 Stockholder Representative Expense Fund, and minus (iv) certain tax refund amounts held by the Wholesome Surviving Corporation for the benefit of the Wholesome stockholders pursuant to the Wholesome Merger Agreement.

The Wholesome Earn-Out Amount plus the Wholesome Actual Closing Merger Consideration minus the Wholesome Forfeiture Amount is hereinafter referred to