Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 267

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 267
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Accounts payable and accrued liabilities’ and $1,432,067 already paid in cash. The remaining $4,348,908 of estimated transaction costs are expected to be incurred after December 31, 2024 (refer to adjustmentAAfor the impact of these additional estimated transaction costs). The remaining unpaid amount of $6,294,842 (consisting of the $1,945,934 transaction costs accrued as of December 31, 2024 and $4,348,908 expected to be incurred after December 31, 2024) will be paid in cash at the close of the Mergers. |

| B | Represents the following preliminary adjustments related to applying the acquisition method of accounting given the Mergers are being accounted for as a business combination under Accounting Standards Codification (“ASC”) Topic 805,Business Combinations(“ASC 805”): |

| B1 | Represents adjustments related to: (1) the elimination of the historical Deep Roots goodwill balance of $6,415,705 given it is not an identifiable asset under ASC 805; (2) the estimated preliminary purchase price allocation for the Deep Roots Merger, including the issuance of Vireo’s Subordinate Voting Shares to legacy Deep Roots shareholders as consideration transferred; and (3) the recognition of acquired intangible assets and goodwill of $50,708,223. Refer to the table in Note 4 below for additional information related to these adjustments. This adjustment also represents the elimination of Deep Roots’ historical equity as a result of the business combination by: (1) reclassifying Deep Roots’ ‘Retained earnings’ balance of $52,337,972 to Additional paid-in capital; and (2) reclassifying Deep Roots Common stock’ balance of $100,000 to Additional paid-in capital. |

| B2 | Represents adjustments related to (1) the estimated preliminary purchase price allocation for the Proper Mergers, including the issuance of Vireo’s Subordinated Voting Shares to Proper as consideration transferred and (2) the recognition of acquired intangible assets and goodwill of $51,595,614. Refer to the table in Note 4 below for additional information related to these adjustments. This adjustment also represents the elimination of the Proper Companies’ historical equity as a result of the business combination by reclassifying the Proper Companies’ ‘Member’s equity’ balance of $30,337,678 to Additional paid-in capital; as well as the elimination of the Proper Companies’ ‘Investment’ balance to ‘Good