Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 115

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 115
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 a positive or negative number): (a) the greater of (1) the trailing twelve (12) month adjusted EBITDA of the Proper Companies and their subsidiaries for the twelve (12) calendar months ending December 31, 2026 and (2) the trailing nine (9) month adjusted EBITDA of the Proper Companies and their subsidiaries for the last nine (9) months of calendar year 2026, with such amount annualized to reflect a full 12-month period, minus (b) the closing EBITDA of $31,000,000, minus (ii) the aggregate amount of any indebtedness for borrowed money incurred by the Proper Companies or their subsidiaries after the Proper Closing Date, plus (iii) certain tax refund amounts held by the Proper Surviving Corporations for the benefit of the Proper Share Recipients pursuant to the Proper Merger Agreement. From the Proper Closing through December 31, 2026, the Company is subject to certain limited covenants with respect to the operation of the Proper Surviving Corporations and the listing of the Company’s Subordinate Voting Shares.

The Proper EBITDA Earn-Out Amount will be calculated by the Company based upon the Company’s audited financial statements for the fiscal year ending December 31, 2026, and will be subject to review by the Member Representative. In the event that the Company and the Member Representative are unable to resolve any disputes with respect to the Company’s calculation of the Proper EBITDA Earn-Out Amount, then such disputes will be submitted to the Proper Independent Accountant for resolution. The fees of the Proper Independent Accountant will be paid by the Company, on the one hand, and Proper, on the other hand, based upon the percentage that the amount actually contested but not awarded to the Company or Proper, respectively, bears to the aggregate amount actually contested by Proper and the Company.

The Proper EBITDA Earn-Out Amount shall be paid by the Company through the issuance of newly issued Subordinate Voting Shares at a share price of the greater of $1.05 and the 20-day volume weighted average price of such Subordinate Voting Shares during the 20 trading day period ending on the trading day immediately prior to December 31, 2026 (the “Proper EBITDA Earn-Out Shares”).

The Subordinate Voting Shares received by the Proper Share Recipients are subject to certain customary restrictions on transfer. For additional information on such restrictions, see “Description of the Merger Agreements – Proper Mergers – Lock Up