Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 347

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 347
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 2024, Wholesome owns 84.72% of Arches and the investor owning a 15.28% noncontrolling interest. On December 18, 2024, the Company entered into a definitive merger agreement with Vireo Growth, Inc., a publicly traded company, to be acquired along with three other cannabis companies located in the United States of America. It is expected the transaction will close in the second quarter of 2025. Total consideration for all four cannabis companies is approximately $397,000,000 in a series of all stock transactions. Principles of Consolidation The accompanying consolidated financial statements include the accounts of WholesomeCo, Inc. and its majority owned subsidiary Arches IP, Inc. and its wholly-owned subsidiaries Wholesome Therapy, LLC, Wholesome Ag, LLC, Wholesome Goods, LLC, Wholesome Direct, LLC and WC Staffing, LLC. (collectively, the Company). All material intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (US GAAP) requires management to make estimates and assumptions that affect reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Concentrations of Credit Risk The Company maintains its cash in bank deposit accounts which, at times, exceed federally insured limits. To date, the Company has not experienced a loss or lack of access to its invested cash; however, no assurance can be provided that access to the Company’s invested cash will not be impacted by adverse conditions in the financial markets. In the normal course of business, the Company provides credit terms to its customers and generally requires no collateral. A major customer is considered to be one that comprises greater than 10% of the Company’s accounts receivable or revenues. Concentrations of accounts receivable were as follows as of December 31:

|            |     | 2024 |     | 2023 |
| Customer A |     |  28% |     |  29% |
| Customer B |     |  24% |     |    * |
| Customer C |     |  16% |     |  18% |
| Customer D |     |  10% |     |  15% |
| Customer E |     |    * |     |  11% |

| * | Customer did not make up 10% or more of accounts receivable |

No customers represented greater