Company: VREOF
Filing Date: 2025-06-12
Form Type: 8-K
Source: 0001104659-25-058908
Chunk: 0

Company: Vireo Growth Inc.
Filing Date: 2025-06-12
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material Definitive Agreement  

On June 6, 2025, Vireo Growth Inc. (“ Vireo”
or the “ Company”) entered into the Second Amendment to Merger Agreement (the “ Second Amendment”) with Vireo DR
Merger Sub Inc., a Nevada corporation (“ Merger Sub”), and Deep Roots Holdings, Inc., a Nevada corporation (“ Deep Roots”),
which amended the Agreement and Plan of Merger, by and among the Company, Merger Sub, Deep Roots, and Shareholder Representative Services
LLC, a Colorado limited liability company (solely in its capacity as representative, agent and attorney-in-fact of the Deep Roots stockholders)
(“ Representative”), dated December 18, 2024 (as amended by the First Amendment to Merger Agreement dated March 14, 2025
and the Second Amendment, the “ Merger Agreement”). Capitalized terms used herein without a definition have the meanings given
to such terms in the Merger Agreement.

The Second Amendment amended the definitions
of (i) “ Closing Indebtedness”, “ Closing Working Capital”, and “ Post-Closing Debt” in the Merger Agreement
to provide that the calculations of such amounts will be determined as of December 31, 2024 rather than the Closing Date (as defined below),
(ii) “280E Tax Reserve Shortfall” in the Merger Agreement to provide that such amount will be $0.00, and (iii) “ Minimum
Cash Amount” to increase the base cash amount required to be held by Deep Roots at the Closing from $3,000,000 to $3,590,000.

The Second Amendment also amended the Merger
Agreement to provide for the indirect assumption and payment by the Company of a pre-Closing compensatory award from Deep Roots to the
holders of its incentive common stock in the amount of $6,205,000 (the “ Compensatory Award”). In respect of the Compensatory
Award, the Company issued a number of its subordinate voting shares (the “ Parent Shares”) to the former holders of Deep Roots’
incentive common stock equal to the Compensatory Award divided by $0.52 for an aggregate of11,932,692Parent
Shares, less the number of Parent Shares withheld to satisfy applicable income, payroll, and employment taxes. The Parent Shares were
issued to the former holders of Deep Roots’ incentive common stock in consideration for a