Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 233

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 233
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 Deep Roots Closing Date, minus (v) the amount of any cash remaining in the Deep Roots Stockholder Representative Expense Fund, and minus (vi) certain tax refund amounts held for the benefit of the Deep Roots stockholders pursuant to the Deep Roots Merger Agreement.

Deep Roots New Retail Forfeiture Amount: In the event that a specified new retail store is not operational by April 1, 2025, and only to the extent that such amount is not previously taken into account in the determination of the Deep Roots Closing Merger Consideration described above, the Company will be entitled to a payment equal to $1,000,000 imputed as EBITDA generated by a specified new retail store if such new retail store is not operational by April 1, 2025 (the “Deep Roots New Retail Forfeiture Amount”). If such $1,000,000 payment becomes owed to the Company, the stockholder representative for Deep Roots may elect to direct (i) the release to the Company of an amount from the Deep Roots Stockholder Representative Expense Fund, (ii) the Deep Roots stockholders to pay to the Company $1,000,000 in cash, or (iii) the Escrow Agent to release to the Company an aggregate number of Deep Roots Escrow Shares (rounded up to the nearest whole number) equal to $1,000,000 divided bythe closing share price of $0.52, or any combination of the foregoing.

The accounting treatment of the Deep Roots Earn-Out Shares and potential forfeitures related to the Deep Roots Forfeiture Shares and the Deep Roots New Retail Forfeiture Amount are expected to be recognized at fair value upon the closing of the Deep Roots Merger. The Company expects to finalize its assessment of the accounting treatment upon consummation of the transaction. If the Deep Root Earn-Out Shares and potential forfeitures related to the Deep Roots Forfeiture Shares and the Deep Roots New Retail Forfeiture Amount are determined to be classified as a liability and/or an asset on the balance sheet, then Vireo would recognize subsequent changes in the fair value of such items as a gain or loss at each reporting period during the Deep Roots Earn-Out Period, pursuant to the provisions of ASC Topic 815, Derivatives and Hedging .

Identifiable Net Assets Acquired

In connection with the Deep Roots Merger, the Company will recognize $20,286,062 of identifiable intangible assets pertaining to certain cannabis licenses being acquired in the acquisition of Deep Roots and $50,708,