TREES Announces Closing of Series A Convertible Preferred Equity Offering; Convertible at $1.00 Per Share

Rhea-AI Summary

General Cannabis Corp. d/b/a TREES (OTCQB: CANN) has successfully completed the sale of 1,180 Units of Series A Convertible Preferred Equity, totaling $1,180,000 in gross proceeds. Each Unit includes one share of preferred stock convertible into 1,000 shares of Common Stock at a $1.00 conversion price, a premium to the current market value. The funding will enhance working capital and support the opening of new stores in Colorado and Oregon. Chairman Carl Williams noted investor confidence in their strategy as a key factor behind this financing.

Positive

• Raised $1,180,000 in gross proceeds through the sale of 1,180 Units of Series A Convertible Preferred Equity.
• Conversion price of $1.00 per share presents a meaningful premium to the current market price.
• Funds will support working capital and facilitate the opening of new stores in Colorado and Oregon.

Negative

• None.

DENVER, Sept. 13, 2021 (GLOBE NEWSWIRE) -- General Cannabis Corp. d/b/a TREES (OTCQB: CANN) (“TREES” or “the Company”), a vertically integrated licensed cannabis operator, is pleased to announce that it has completed the sale of 1,180 Units of Series A Convertible Preferred Equity. Each Unit consists of one share of Series A Convertible Preferred Stock (convertible into 1,000 shares of the Company’s Common Stock) and 300 warrants. The conversion price of the Common Stock at the time of conversion is $1.00 per share, a meaningful premium to the current market price of the Common Stock. The total gross proceeds of the offering was $1,180,000.

The Company intends to use the proceeds for additional working capital and general corporate purposes. Furthermore, this infusion of capital strengthens the TREES balance sheet and helps to accelerate the opening of its new stores in both Colorado and Oregon.

Carl Williams, Chairman of the Board, said, “This financing is a testament to the confidence that our investors have in our roll-up strategy. The meaningful premium to our current stock price and the ability to continue to attract strategic capital, validates our long-term vision.”

ABOUT TREES

TREES is the parent company of a Colorado-based, vertically-integrated cannabis business pursuing a roll-up strategy of licensed assets in mature markets. TREES currently owns a 17,000 square foot light-deprivation greenhouse cultivation facility in Boulder, Colorado and a dispensary in Englewood, Colorado.

Forward-looking Statements

This press release contains "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements are not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances. Although TREES believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, caution must be exercised in relying on forward-looking statements because TREES can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking statements. Such risks and uncertainties include, but are not limited to, current and future market conditions; the expected or potential impact of the COVID-19 pandemic on TREES's business operations, financial results and position, as well as world economy and volatility, risks related to federal, state, local and foreign government laws, rules and regulations, including changes in the regulation of medical and recreational cannabis use; as well as those risks and uncertainties discussed from time to time in TREES's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q under the heading "Risk Factors" and in subsequent filings with the Securities and Exchange Commission. The statements in this press release are made as of the date of this release. TREES undertakes no duty to update any forward-looking statements made herein.

Contact:
IR@generalcann.com

FAQ

What is the significance of the $1,180,000 raised by General Cannabis Corp.?

The $1,180,000 raised will be used for working capital and to help open new stores in Colorado and Oregon.

What does the Series A Convertible Preferred Equity consist of in the sale by TREES (CANN)?

Each Unit in the Series A sale includes one share of preferred stock convertible into 1,000 shares of Common Stock, plus 300 warrants.

What is the conversion price for the Common Stock from the Series A Convertible Preferred Equity?

The conversion price for the Common Stock is set at $1.00 per share.

How does the recent financing impact TREES' balance sheet?

The financing strengthens TREES' balance sheet by providing additional capital for growth.

What is TREES' strategy regarding its cannabis operations?

TREES is pursuing a roll-up strategy of licensed assets in mature markets.