Company: VREOF
Filing Date: 2025-06-12
Form Type: 8-K
Source: 0001104659-25-058908
Chunk: 4

Company: Vireo Growth Inc.
Filing Date: 2025-06-12
Form: 8-K
Item: Item 2.01
Chunk 4
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 months, may not, subject to customary exceptions, offer, issue, sell, transfer or otherwise dispose of, or enter into certain arrangements
that transfer any of the economic consequences of the ownership of, the Parent Shares issued pursuant to the Merger without the prior
written consent of the Company. The lock-up agreements provide that the Parent Shares acquired by the stockholders of Deep Roots pursuant
to the Merger Agreement as Total Merger Consideration shares are subject to a lock-up release schedule of 7.5% 12-months after the Closing
Date, 10% at each of 18-months and 21-months after the Closing Date, 17.5% 24-months after the Closing Date, 15% 27-months after the Closing
Date and 20% at each of 30-months and 33-months after the Closing Date. In addition, all such Parent Shares held by such persons are subject
to lock-up during the 6-month period ending December 31, 2026. In addition, any Parent Shares issued in connection with the earn-out payments
described above will be subject to lock-up periods following the issuance of such earnout shares, with a 20% release per quarter ending
at 15 months post-issuance.

Vireo’s Chief Executive Officer, John Mazarakis,
serves as a partner of Chicago Atlantic Group, LP, which is an affiliate of Chicago Atlantic Admin, LLC (the “ Agent”), which
is the senior secured lender for Deep Roots and its affiliates (including the Acquired Companies). Given his ownership interest in the
Agent and its affiliates, Mr. Mazarakis has an approximate 29% interest in the Deep Roots’ debt transactions with the Agent. Deep
Roots has aggregate outstanding net debt with the Agent and/or its affiliates of approximately $19,200,000, which debt continued to be
held by Deep Roots after the Closing.

The Parent Shares issued and to be issued by the
Company to the stockholders of Deep Roots pursuant to the Merger Agreement were and will be issued in reliance upon the exemptions from
registration under the Securities Act provided by Section 4(a)(2) thereunder, as a transaction not involving a public offering and Rule
506 promulgated under the Securities Act.

The foregoing description of the Merger Agreement is only a summary,
does not purport to be complete and is qualified in its entirety by reference to the full text of the Merger Agreement