Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 45

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 45
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 Deep Roots Closing Merger Consideration, then the Company may elect to pay to the Deep Roots stockholders an amount in cash equal to such excess or issue additional Subordinate Voting Shares to the Deep Roots Stockholders in a number equal to the amount of such excess divided by the closing share price of $0.52. In the event that the Deep Roots Actual Closing Merger Consideration is less than the estimated Deep Roots Closing Merger Consideration, the Stockholder Representative may elect to direct (i) the Company or the Deep Roots Surviving Corporation to release to the Company an amount in cash equal to such shortfall from the Stockholder Representative Expense Fund, (ii) the Deep Roots stockholders to pay to the Company in cash the amount of such shortfall, or (iii) the Deep Roots Escrow Agent to release to the Company an aggregate number of Escrow Shares (rounded up to the nearest whole number) equal to the amount of such shortfall divided by the closing share price of $0.52, or any combination of the foregoing. The “Stockholder Representative Expense Fund” is an amount in cash equal to $500,000 that Deep Roots is required to deposit prior to the Deep Roots Closing in a separate designated account in the name of Deep Roots for use by the Stockholder Representative.

The Subordinate Voting Shares received by the Deep Roots stockholders are subject to certain customary restrictions on transfer. For additional information on such restrictions, see “Description of the Merger Agreements – Deep Roots Merger – Lock-Up Letters” below. For additional information on the Company’s Subordinate Voting Shares, please see “Description of the Company’s Securities” below.

Deep Roots Earn-Out Amount

The Deep Roots stockholders will be eligible to receive an earn-out amount (the “Deep Roots Earn-Out Amount”) subject to the satisfaction of certain EBITDA performance thresholds described below. The Deep Roots Earn-Out Amount will be calculated as an amount equal to (i) the product of four (4) multiplied by the following (which may be a positive or negative number): (a) the greater of (1) the trailing twelve (12) month adjusted EBITDA of Deep Roots and its subsidiaries for the twelve (12) calendar months ending December 31, 2026 and (2) the trailing nine (9) month adjusted EBITDA of Deep Roots and its subsidiaries for the last nine (9) months of calendar year 2026, with such amount annualized to reflect a full 12-month period, in each case excluding gains or