Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 75

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 75
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 Wholesome Merger Agreement and described in the section “Description of the Merger Agreements – Wholesome Merger – Conditions to the Closing of the Wholesome Merger”, other than those conditions that by their terms are to be satisfied at the Wholesome Closing, but subject to the satisfaction or waiver of such conditions. The Wholesome Merger will become effective at the Wholesome Effective Time. Consideration to be Received in the Wholesome Merger The aggregate amount payable in connection with the Wholesome Transactions, including the Wholesome Merger will consist of (i) the closing merger consideration (the “Wholesome Closing Merger Consideration”) calculated as described below and paid through the issuance of newly issued Subordinate Voting Shares at a closing share price of $0.52 plus; (ii) rights to potential additional earn-out amounts (the “Wholesome Earn-Out Amount”) as described below and paid through the issuance of newly issued Subordinate Voting Shares at a share price of the greater of $1.05 and 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; less(iii) any forfeiture amount (the “Wholesome Forfeiture Amount”) as described below. Wholesome Acquisition Multiple Certain of the calculations described below with respect to the consideration to be received by the Wholesome stockholders are based upon an acquisition multiple (the “Wholesome Acquisition Multiple”) of approximately 4.175. The Wholesome Acquisition Multiple is calculated as the quotient of (a) the sum of (i) 107,737,558 Subordinate Voting Shares multiplied by the closing share price of $0.52, plus(ii) $10,987,018 (imputed for certain indebtedness of Wholesome and its subsidiaries (excluding Arches)), less(iii) $1,000,000 (imputed for certain unrestricted cash held by Wholesome as of the Wholesome Closing), less(iv) $2,000,000 (imputed for cash reserves required to be held by Wholesome and its subsidiaries (excluding Arches) in respect of certain tax obligations), plus(vi) $2,789,452 (imputed for pre-closing taxes and any shortfall in respect of cash reserves required to be held by Wholesome and its subsidiaries (excluding Arches) in respect of certain tax obligations of Wholes