Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 110

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 110
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 waiver of the conditions set forth in the Proper Merger Agreement and described in the section “Description of the Merger Agreements – Proper Mergers – Conditions to the Closing of the Proper Mergers”, other than those conditions that by their terms are to be satisfied at the Proper Closing, but subject to the satisfaction or waiver of such conditions. Each of the Proper Mergers will become effective at the Proper Effective Time. Consideration to be Received in the Proper Mergers The aggregate amount payable in connection with the Proper Transactions, including the Proper Mergers, will consist of (i) the closing merger consideration (the “Proper Closing Merger Consideration”) calculated as described below and paid through the issuance of newly issued Subordinate Voting Shares at a closing share price of $0.52 plus; (ii) rights to potential additional earn-out amounts (the “Proper Earn-Out Amount”) as described below and paid through the issuance of newly issued Subordinate Voting Shares at a share price of the greater of $1.05 and the 20-day volume weighted average price of such Subordinate Voting Shares during the 20 trading day period ending on the trading day immediately prior to December 31, 2026; less(iii) any forfeiture amount (the “Proper Forfeiture Amount”) as described below. Proper Acquisition Multiple Certain of the calculations described below with respect to the consideration to be received by the Proper Share Recipients are based upon an acquisition multiple (the “Proper Acquisition Multiple”) of approximately 4.175. The Proper Acquisition Multiple is calculated as the quotient of (a) the sum of (i) 174,002,004 Subordinate Voting Shares multiplied by the closing share price of $0.52, plus(ii) $41,443,958 (imputed for certain indebtedness of the Proper Companies and their subsidiaries), less(iii) $3,000,000 (imputed for certain unrestricted cash held by the Proper Companies as of the Proper Closing), less(iv) $2,000,000 (imputed for cash reserves required to be held by the Proper Companies and their subsidiaries in respect of certain tax obligations), plus(v) $5,000,000 (imputed for pre-closing taxes and any shortfall in respect of cash reserves required to be held by the Proper Companies and their subsidiaries in respect of certain tax obligations of the Proper Companies and their subsidiaries), less(vi) $2,500,000 (imputed for a post-signing investment to be made by