Vireo Health has entered into a mutual release with Bruce Linton relating to all outstanding matters between them.
Mr. Linton joined Vireo in November of 2019. On June 8, 2020, the Company elected to terminate its employment agreement with Mr. Linton as Executive Chairman, on an entirely without-cause basis. In connection with Mr. Linton’s employment agreement, Mr. Linton received warrants to acquire up to 15 million subordinate voting shares in the Company. 10 million of the Warrants have an exercise price of US$1.02 per Share.
As part of the Mutual Release, Vireo has issued 8,000,000 Shares to Mr. Linton. 7,110,381 Shares were issued to Mr. Linton pursuant to the exercise of the First Tranche Warrants on a cashless basis. The remaining 889,519 Shares were issued to Mr. Linton pursuant to a private placement exemption resulting in no cash consideration being paid to Vireo. The Shares issued pursuant to the First Tranche Warrants are free of trading restrictions and the 889,519 Shares are subject to a hold period expiring on August 1, 2021. In addition, as part of the Mutual Release, Mr. Linton has surrendered all right, title and interest in all other Warrants for cancellation.