Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 355

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 355
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3, respectively and is included in interest expense on the consolidated statements of income. At inception the value of the warrants was $458,312. As of December 31, 2024 and 2023 the unamortized portion of the debt discount was $0 and $62,154, respectively.

#### 6. Long-Term Debt

#### Term Loan
The Company entered into a loan agreement with a lending institution on July 26, 2022 for up to $12,500,000 in the form of a term loan agreement (Term Loan). Interest accrues at a rate of 11.25% per annum and is due monthly. Repayment of principal and interest begins on August 26, 2023. The term loan matures on July 26, 2027. As of December 31, 2024 and 2023, the balance on the Term Loan was $8,703,774 and $11,448,087, respectively.

The Term Loan is collateralized against substantially all the Company’s assets and is subject to certain financial and negative covenants. As of December 31, 2024, management believes the Company is in compliance with all covenants.

In connection with the execution of the Term Loan, the Company issued 293,580 Class A Common shares to certain investors for providing a guaranty of the full and complete payment of the loan. The Company has determined that the shares represent a debt discount cost to be amortized over the term of the agreement. The value of the shares was $137,983. Amortization of the debt discount was $27,597 and $42,255 for the years ended December 31, 2024 and 2023, respectively and is included in interest expense on the consolidated statements of income. As of December 31, 2024 and 2023, the unamortized portion of the debt discount was $68,131 and $95,728, respectively.

The Company incurred $287,165 of debt issuance costs, which is recorded net of the Term Loan balance and amortized over the life of the loan. Amortization of debt issuance costs was $57,433 and $57,433 for the years ended December 31, 2024 and 2023, respectively, and is included in interest expense on the consolidated statements of income. As of December 31, 2024 and 2023, the unamortized balance of debt issuance costs