Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 352

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 352
---
 $— |     | $5,257,380 |
| Forgiveness of accounts payable in exchange for property and equipment       |     |                               $— |     |   $917,606 |

See accompanying notes to consolidated financial statements. B-27

TABLE OF CONTENTS

Notes to Consolidated Financial Statements 1. Description of Organization and Summary of Significant Accounting Policies Organization WholesomeCo, Inc. (WholesomeCo) was incorporated on June 15, 2020, as a Delaware corporation. The Company is a complete, plant-to-patient medical cannabis company. The Company cultivates, processes and sells high-quality cannabis products such as flowers, vape cartridges, edibles, beverages and concentrates. The Company is focused on providing the medicinal value of cannabis through its products as a natural path to health and wellness. The Company markets to retail stores and directly to consumers in the state of Utah in the United States of America. On February 28, 2024, WholesomeCo formed Arches IP, Inc. (Arches) and transferred its intellectual property specific to the cannabis delivery management platform in exchange for 12,600,000 Series 1 preferred stock. An outside investor purchased 2,273,362 shares of Series 2 preferred stock in exchange for $1,400,000. The purpose of setting up Arches was to allow that entity to build a customer base and grow revenues by specifically selling access to the Arches platform to cannabis companies across the United States of America. As of December 31, 2024, Wholesome owns 84.72% of Arches and the investor owning a 15.28% noncontrolling interest. On December 18, 2024, the Company entered into a definitive merger agreement with Vireo Growth, Inc., a publicly traded company, to be acquired along with three other cannabis companies located in the United States of America. It is expected the transaction will close in the second quarter of 2025. Total consideration for all four cannabis companies is approximately $397,000,000 in a series of all stock transactions. Principles of Consolidation The accompanying consolidated financial statements include the accounts of WholesomeCo, Inc. and its majority owned subsidiary Arches IP, Inc. and its wholly-owned subsidiaries Wholesome Therapy, LLC, Wholesome Ag, LLC, Wholesome Goods, LLC, Wholesome Direct, LLC and WC Staffing, LLC. (collectively, the Company). All material intercompany accounts