Company: VREOF
Filing Date: 2025-05-12
Form Type: 8-K
Source: 0001104659-25-047350
Chunk: 4

Company: Vireo Growth Inc.
Filing Date: 2025-05-12
Form: 8-K
Item: Item 2.01
Chunk 4
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 revenue Market Share or EBITDA Margin for 2026 is less than the corresponding figures for 2024 and (c) the Company’s
20-day VWAP as of immediately prior to December 31, 2026 is greater than US$1.05 per share. The amount of shares subject to a clawback
would be equal to the Acquisition Multiple multiplied by the EBITDA Deficiency, adjusted for incremental debt and certain other matters,
divided by US$0.52 per share.

Pursuant to the Merger Agreement, the stockholders of Wholesome entered
into lock-up agreements with the Company providing that each such person, for a period of up to 33 months, may not, subject to customary
exceptions, offer, issue, sell, transfer or otherwise dispose of, or enter into certain arrangements that transfer any of the economic
consequences of the ownership of, the Parent Shares issued pursuant to the Merger without the prior written consent of the Company. The
lock-up agreements provide that the Parent Shares acquired by the stockholders of Wholesome pursuant to the Merger Agreement as Total
Merger Consideration shares are subject to a lock-up release schedule of 7.5% 12-months after the Closing Date, 10% at each of 18-months
and 21-months after the Closing Date, 17.5% 24-months after the Closing Date, 15% 27-months after the Closing Date and 20% at each of
30-months and 33-months after the Closing Date. In addition, all such Parent Shares held by such persons are subject to lock-up during
the 6-month period ending December 31, 2026. In addition, any Parent Shares issued in connection with the earn-out payments described
above will be subject to lock-up periods following the issuance of such earnout shares, with a 20% release per quarter ending at 15 months
post-issuance.

The Parent Shares issued and to be issued by the Company to the stockholders
of Wholesome pursuant to the Merger Agreement were and will be issued in reliance upon the exemptions from registration under the Securities
Act of 1933, as amended (the “ Securities Act”), provided by Section 4(a)(2) thereunder, as a transaction not involving a public
offering and Rule 506 promulgated under the Securities Act.

The foregoing description of the Merger Agreement is only a summary