Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 361

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 361
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087, respectively.

The Term Loan is collateralized against substantially all the Company’s assets and is subject to certain financial and negative covenants. As of December 31, 2024, management believes the Company is in compliance with all covenants.

In connection with the execution of the Term Loan, the Company issued 293,580 Class A Common shares to certain investors for providing a guaranty of the full and complete payment of the loan. The Company has determined that the shares represent a debt discount cost to be amortized over the term of the agreement. The value of the shares was $137,983. Amortization of the debt discount was $27,597 and $42,255 for the years ended December 31, 2024 and 2023, respectively and is included in interest expense on the consolidated statements of income. As of December 31, 2024 and 2023, the unamortized portion of the debt discount was $68,131 and $95,728, respectively.

The Company incurred $287,165 of debt issuance costs, which is recorded net of the Term Loan balance and amortized over the life of the loan. Amortization of debt issuance costs was $57,433 and $57,433 for the years ended December 31, 2024 and 2023, respectively, and is included in interest expense on the consolidated statements of income. As of December 31, 2024 and 2023, the unamortized balance of debt issuance costs was $152,274 and $201,015.

The lenders of the line of credit and related-party promissory note have entered into a subordination and intercreditor agreement with the term loan lender, providing that the line of credit and related-party promissory note are subordinate to the term loan.

#### Related-Party Promissory Note
The Company entered into a term loan promissory note (Term Loan Promissory Note) with a related party on March 30, 2022 for $4,430,000. Interest accrues at a rate of 10% per annum and is due monthly. Repayment of principal and interest begins on March 30, 2023. The term loan matures on March 31, 2027. As of December 31, 2024 and 2023, the balance on the Term Loan Promissory Note was $996,305 and $1,372,204, respectively.

The Term Loan Prom