Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 116

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 116
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-Letters” below. For additional information on the Company’s Subordinate Voting Shares, please see “Description of the Company’s Securities” below.

Proper E-Commerce Earn-Out Amount

The Proper Share Recipients will be eligible to receive an additional earn-out amount (the “Proper E-Commerce Earn-Out Amount”) based in part on the revenue performance of Arches during the 2026 calendar year. The Proper E-Commerce Earn-Out Amount will be equal to 10% an amount equal to of the greater of (i) $37,500,000 or (ii) the sum of (a)(1) five (5) multiplied by (2) (I) 5% of the aggregate dollar amount of all delivery sales processed through the Arches platform plus (II) 2.5% of the aggregate dollar amount of certain online pick-up, curbside, or drive thru sales processed through the Arches platform plus (III) 1% of the aggregate dollar amount of certain walk-in sales processed through the Arches platform, with such amount in (2) measured either (A) during the full twelve (12) month 2026 calendar year or (B) the April 1, 2026 through December 31, 2026 period annualized to reflect a full twelve (12) month period, depending on which measurement period provides the greater sum (the “Proper E-Commerce Revenue Amount”) minus (b) $4,000,000.

The Proper E-Commerce 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 E-Commerce Earn-Out Shares” and collectively with the Proper EBITDA Earn-Out Shares, the “Proper 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 Letters” below. For additional information on the Company’s Subordinate Voting Shares, see “Description of the Company’s Securities” below.

Proper Forfeiture Amount

The Proper Share Recipients will be required to forfeit the Subordinate Voting Shares received by such Proper Share