Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 385

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 385
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 the zoning approval from all applicable authorities for operation of the business a payment of $1,500,000 is due. Within ten days of the approval from the Missouri Department of Health and Senior Services to commence operations of the business under the license a payment of $1,000,000 is due. The remaining $250,000 is due and payable at closing.

| NOTE 19: | CONTINGENCIES |

From time to time, the Company may be party to various legal actions and administrative proceedings arising in the ordinary course of business. Management is not aware of any current claims.

| NOTE 20: | RELATED PARTY TRANSACTIONS |

The Company had a note receivable in 2023 from a company controlled by the majority of members, which was repaid in 2024. The Company has a note payable to a member. See Note 4 – Notes Payable for details. The Company has a lease liability to an entity owned by two largest members. See Note 9 – Financing Liability – Related Party for details.

| NOTE 21: | SUPPLEMENTAL CASH FLOW INFORMATION |

Cash paid for income taxes for the years ended December 31, 2024 and 2023 was $2,298,002 and $9,422,306 respectively. Cash paid for interest for the years ended December 31, 2024 and 2023 was $203,461 and $0 respectively. During the year 2024, convertible debt holders converted $5,900,000 into members’ equity. See Note 8 – Leases for supplement cash flow information related to leases.

| NOTE 22: | SUBSEQUENT EVENTS |

The Company’s operating agreement entitles B-1 members to a preferred return of $5,900,000. The Company is obligated to distribute the first $5,900,000 of distributions to these members, but it is discretionary when it occurs. The Company is negotiating with an institutional lender to borrow $5,900,000 to fulfil obligations to preferred members. The Company entered into a merger agreement with Vireo Growth, Inc. (Vireo) on December 18, 2024. This transaction is subject to the approval of holders of a majority of Vireo’s voting shares and regulatory approvals.

B-61