Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 228

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 228
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 with the components of the purchase consideration, along with the valuations and necessary calculations related to these components, as described in further detail below. Accordingly, for purposes of preparing the unaudited pro forma

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condensed combined financial information, the Company has not included an estimated amount for the ‘Contingent consideration – Deep Roots Earn-Out Shares’ or ‘Contingent consideration – New Retail Forfeiture Amount’ components. In addition, the Company has assumed that the amount for the ‘Contingent consideration – Deep Roots Forfeiture Amount’ is equal to 50% of the Merger Consideration. The final conclusions surrounding the accounting treatment, valuations, and necessary calculations for each of the components will be finalized within twelve months of the Deep Roots Closing Date. Merger Consideration: Estimated Merger Consideration of $112,810,400 is based on the Company’s closing share price of $0.46 on February 19, 2025 multiplied by the number of Vireo Subordinate Voting Shares currently estimated to be issued of 245,240,000 (of which up to 50% of such shares are subject to the clawback provisions of the Deep Roots Forfeiture Amount, as defined below, and is included as contingent consideration in the table above), in exchange for acquiring all of the issued and outstanding shares of Deep Roots. The estimated value of the Merger Consideration will change as a result of fluctuations in the share price of the Company’s stock and final number of Vireo Subordinate Voting Shares to be issued on the Deep Roots Closing Date. On the Deep Roots Closing Date, 10% of the Subordinate Voting Shares (the “Deep Roots Escrow Shares”) will be delivered to an escrow agent (the “Deep Roots Escrow Agent”) under an escrow agreement (the “Deep Roots Escrow Agreement”). The Deep Roots Escrow Shares will be held by the Deep Roots Escrow Agent pursuant to the Deep Roots Escrow Agreement as a recourse of the Company in support of the purchase price adjustment mechanisms stated in the Deep Roots Merger Agreement. The Deep Roots Escrow Shares that are not otherwise subject to any indemnification claims of the Company indemnified parties will be released to the Deep Roots stockholders following the date that is twenty-four months after the Deep Roots Closing Date. Contingent consideration: Deep Roots Earn-Out Shares: Pursuant to the Deep Roots Merger Agreement, the Deep Roots stockholders will be eligible to receive a potential earn-out