Company: VREOF
Filing Date: 2025-12-09
Form Type: S-3
Source: 0001104659-25-119699
Chunk: 8

Company: Vireo Growth Inc.
Filing Date: 2025-12-09
Form: S-3
Chunk 8
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 sole shareholders of each of Proper Holdings
Management, Inc. and NGH Investments, Inc. and the equityholders of Proper Holdings, LLC and other subsequent recipients of
the Company’s Subordinate Voting Shares from Proper Holdings, LLC pursuant to the Proper merger agreement, have agreed or will agree
to indemnify the Company for certain damages arising from certain of the representations, warranties, covenants, and agreements of each
of these entities, respectively, in each case as set forth in the merger agreements. However, there can be no assurance that these indemnities
will be sufficient to make the Company whole for the full amount of such damages, or that such indemnifying parties’ ability to
satisfy their respective indemnification obligation will not be impaired in the future.

● The Company’s ability to use net
operating loss carryforwards and other tax attributes may be limited as a result of the mergers.

● We incurred net losses in fiscal years
2024 and 2023, and cannot provide assurance as to when or if we will become profitable and generate cash in our operating activities.

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● If additional financing is required to
operate our business, we may face difficulties acquiring such additional financing on terms acceptable to us or at all.

● Our senior secured credit facility contains
covenant restrictions that may limit our ability to operate our business.

● Servicing our debt will require a significant
amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt.

● We face security risks related to our
physical facilities and cash transfers due to the mostly cash nature of the cannabis industry.

● Our business is subject to the risks inherent
in agricultural operations.

● We face risks related to our information
technology systems, including potential cyber-attacks and security and privacy breaches.

● Our reputation and ability to do business
may be negatively impacted by our suppliers’ inability to produce and ship products.

● We are dependent on key inputs, suppliers
and skilled labor for the cultivation, extraction, and production of cannabis products.

● Our inability to attract and retain key
personnel could materially, adversely affect our business.

● We face an inherent risk of product liability
claims as a manufacturer, processor and producer of products that are intended to be ingested by people.

● Our intellectual property may be difficult
to protect.

● We face intense competition in a new and
rapidly growing industry by other licensed companies with more experience and financial resources than we have and