Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 260

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 260
---
 Roots Holdings, Inc. (“Deep Roots”) (the “Deep Roots Merger”), (ii) Proper Holdings, LLC (“Proper”), NGH Investments, Inc. (“NGH”), and Proper Holdings Management, Inc. (“Proper MSA Newco” and together with NGH, the “Proper Companies”) (the “Proper Mergers”), and (iii) WholesomeCo, Inc. (“Wholesome”) (the “Wholesome Merger”, and collectively with the Deep Roots Merger and the Proper Mergers, the “Mergers”). Pursuant to the Merger Agreements, Vireo will acquire all of the issued and outstanding shares of Deep Roots, the Proper Companies, and Wholesome, in exchange for the issuance of an estimated 553,902,639 subordinated voting shares (the “Subordinate Voting Shares”) of Vireo, representing a value of $254,795,215. Deep Roots Merger On December 18, 2024, Vireo entered into an Agreement and Plan of Merger (the “Deep Roots Merger Agreement”) with Deep Roots, where pursuant to the Deep Roots Merger Agreement, Vireo will acquire all of the issued and outstanding shares of Deep Roots (the “Deep Roots Merger”) in exchange for the currently estimated issuance of 245,240,000 Subordinate Voting Shares of Vireo (subject to the clawback provisions of the Deep Roots Forfeiture

152

#### TABLE OF CONTENTS
Amount and Deep Roots New Retail Forfeiture Amount, as defined below), representing a value of $112,810,400 (the “ Deep Roots Merger Consideration”), plus the potential Deep Roots Earn-Out Shares, as defined below. The number of Subordinate Voting Shares to be issued at the closing date of the Deep Roots Merger (the “Deep Roots Closing Date”) was calculated by dividing the value of the merger consideration as of December 18, 2024 by a share price reference of $0.52 for Vireo’s Subordinate Voting Shares. In general, the Deep Roots Merger Consideration is based upon a multiple of a $31,000,000 earnings before interest, taxes, depreciation, and amortization (“EBITDA”), adjusted for certain items as described in the definition of Deep Roots Merger Consideration in the Deep Roots Merger Agreement, including cash, indebtedness, transaction expenses, working capital, and tax items.

At the Deep Roots Closing Date