Company: VREOF
Filing Date: 2025-06-12
Form Type: 8-K
Source: 0001104659-25-058908
Chunk: 3

Company: Vireo Growth Inc.
Filing Date: 2025-06-12
Form: 8-K
Item: Item 2.01
Chunk 3
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 calculation of the Closing Merger Consideration and the Total Merger Consideration, please
see the disclosures regarding the Merger in the Information Statement.

Subject to the terms and conditions of the Merger Agreement, former
stockholders of Deep Roots (other than in respect of incentive common stock of Deep Roots) may receive additional Parent Shares pursuant
to earn-out payments based on Deep Roots’ Adjusted EBITDA growth compared to Deep Roots’ Closing EBITDA plus New Retail EBITDA
(at a 4x multiple), adjusted for incremental debt and certain other matters, and paid using a share price for the Parent Shares of the
higher of $1.05 or the 20-day VWAP as of immediately prior to December 31, 2026. Adjusted EBITDA growth is generally defined as the increase
between Closing EBITDA plus New Retail EBITDA and the higher of 2026 Adjusted EBITDA or trailing nine-month annualized Adjusted EBITDA
as of December 31, 2026.

In no event shall the number of earn-out shares issued under the Merger
Agreement, in the aggregate, exceed the Closing Share Payment.

The Merger Agreement provides for the clawback of up to 50% of the
Parent Shares issued as Actual Closing Merger Consideration (which excludes Parent Shares issued in respect of the Compensatory Award),
if (a) 2026 Adjusted EBITDA is less than 96.5% of the Closing EBITDA plus an amount equal to $1,000,000 in respect to New Retail EBITDA
(as adjusted to deduct the New Retail EBITDA Shortfall Amount) (the amount of such shortfall, the “ EBITDA Deficiency”), and
(b) retail revenue Market Share or EBITDA Margin for 2026 is less than the corresponding figures for 2024 and (c) the Company’s
20-day VWAP as of immediately prior to December 31, 2026 is greater than $1.05 per share. The amount of shares subject to a clawback would
be equal to the Acquisition Multiple multiplied by the EBITDA Deficiency, adjusted for incremental debt and certain other matters, divided
by $0.52 per share.

Pursuant to the Merger Agreement, the stockholders of Deep Roots receiving
part of the Closing Share Payment entered into lock-up agreements with the Company providing that each such person, for a period of up
to 33