Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 245

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 245
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BITDA 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 are determined to be classified as a liability and/or an asset on the balance sheet, then Vireo would recognize subsequent changes in the fair value of such items as a gain or loss at each reporting period during the Wholesome Earn-Out Period, pursuant to the provisions of ASC Topic 815, Derivatives and Hedging .

Identifiable Net Assets Acquired

In connection with the Wholesome Merger, the Company will recognize $56,467,591 of additional acquired intangible assets and goodwill, which represents the excess purchase price over fair value of identifiable net assets acquired, pursuant to the preliminary purchase price allocation. Goodwill will not be amortized, but instead will be tested for impairment at least annually or more frequently if certain indicators are present. In the event that the value of goodwill or other intangible assets become impaired in the future, an accounting charge for impairment would be recognized during the period in which the determination was made.

The purchase price has been allocated to the tangible and identifiable intangible assets and liabilities based on the respective estimated fair values and will be finalized upon the closing of the Wholesome Merger. The excess of the purchase price over the net tangible and identifiable intangible assets has been recorded as goodwill. Goodwill represents potential revenue synergies related to new product development, various expense synergies and opportunities to enter new markets, and is assigned to the Company’s cultivation, production, and sale of cannabis business segment.

#### Note 5. Net Loss per Share
Net loss per share was calculated using the historical weighted average shares outstanding and the issuance of additional shares in connection with the Wholesome Merger, assuming the shares were outstanding since January 1