Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 226

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 226
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 will be expensed as part of the Deep Roots Merger. Of the total estimated transaction costs, $1,126,000 has been incurred and is therefore reflected within Vireo’s December 31, 2024 historical financial statements as follows: $648,645 recorded in ‘Accounts payable and accrued liabilities’ and $477,355 already paid in cash. The remaining $1,449,636 of estimated transaction costs are expected to be incurred after December 31, 2024 (refer to adjustmentAAfor the impact of these additional estimated transaction costs). The remaining unpaid amount of $2,098,281 (consisting of the $648,645 transaction costs accrued as of December 31, 2024 and $1,449,636 expected to be incurred after December 31, 2024) will be paid in cash at the close of the Deep Roots Merger. |

| B | Represents the following preliminary adjustments related to applying the acquisition method of accounting given the Deep Roots Merger is being accounted for as a business combination under Accounting Standards Codification (“ASC”) Topic 805,Business Combinations(“ASC 805”): |

| B1 | Represents adjustments related to: (1) the elimination of the historical Deep Roots goodwill balance of $6,415,705 given it is not an identifiable asset under ASC 805; (2) the estimated preliminary purchase price allocation for the Deep Roots Merger, including the issuance of Vireo’s Subordinate Voting Shares to legacy Deep Roots shareholders as consideration transferred; and (3) the recognition of acquired intangible assets and goodwill of $50,708,223. Refer to the table in Note 4 below for additional information related to these adjustments. |

| B2 | Represents the elimination of Deep Roots’ historical equity as a result of the business combination by: (1) reclassifying Deep Roots’ ‘Retained earnings’ balance of $52,337,972 to Additional paid-in capital; and (2) reclassifying Deep Roots’ Common stock’ balance of $100,000 to Additional paid-in capital. |

| C | Not used. |

| D | Not used. |

| E | Represents an assumed fair value of the contingent consideration for the potential forfeitures related to the Deep Roots Forfeiture Shares, as defined below. No amount has been estimated for the Deep Roots Earn-Out Shares or the Deep Roots New Retail Forfeiture Amount, as the related accounting is expected to be finalized upon consummation of the Deep Roots