Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 282

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 282
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 of preparing the unaudited pro forma condensed combined financial information, the Company has not included an estimated amount for the ‘Contingent consideration - Wholesome EBITDA Earn-Out Shares’ or ‘Contingent consideration - Wholesome E-Commerce Earn-Out Shares’ components. In addition, the Company has assumed that the amount for the ‘Contingent consideration - Wholesome Forfeiture Amount’ is equal to 50% of the Wholesome 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 Wholesome Closing Date. Merger Consideration: Estimated Wholesome Merger Consideration of $60,051,523 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 130,546,789 (of which up to 50% of such shares are subject to the clawback provisions of the Wholesome 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 Wholesome. The estimated value of the Wholesome Merger Consideration will change based on fluctuations in the share price of the Company’s stock and final number of Vireo Subordinate Voting Shares to be issued on the Wholesome Closing Date. On the Wholesome Closing Date, 10% of the Subordinate Voting Shares (the “Wholesome Escrow Shares”) will be delivered to an escrow agent (the “Wholesome Escrow Agent”) under an escrow agreement (the “Wholesome Escrow Agreement”). The Wholesome Escrow Shares will be held by the Wholesome Escrow Agent pursuant to the Wholesome Escrow Agreement as a recourse of the Company in support of the purchase price adjustment mechanisms stated in the Wholesome Merger Agreement. The Wholesome Escrow Shares that are not otherwise subject to any indemnification claims of the Company indemnified parties will be released to the Wholesome stockholders following the date that is twenty-four months after the Wholesome Closing Date. Contingent consideration: Wholesome EBITDA Earn-Out Shares: Pursuant to the Wholesome Merger Agreement, the Wholesome stockholders will be eligible to receive a potential earn-out amount (the “Wh