TREES Corporation Signs Definitive Agreement to Acquire Green Man Cannabis Dispensary; Continuing Its Colorado Retail Expansion

Rhea-AI Summary

TREES Corporation (CANN) has signed a definitive agreement to acquire GMC LLC, operating as Green Man Cannabis Dispensary in Denver. This acquisition will increase TREES' footprint to eight dispensaries across two states. The deal involves 4,494,382 shares of common stock priced at $0.89 per share, alongside cash. It is expected to close by year-end, pending regulatory approvals. Adam Hershey, Interim CEO, emphasized the strategic location and revenue potential of Green Man, enhancing TREES' ability to serve a broader customer base in the Denver area.

Positive

• Acquisition of Green Man Cannabis expected to enhance revenue with above-average performance.
• Expansion of retail footprint to eight stores improves market presence.

Negative

• Acquisition involves significant share issuance which could dilute existing shareholders' equity.

DENVER, Nov. 03, 2022 (GLOBE NEWSWIRE) -- TREES Corporation (OTCQB: CANN) (“TREES” or the “Company”) is pleased to announce the signing of a definitive agreement to acquire GMC LLC d/b/a Green Man Cannabis Dispensary, located in Denver. This purchase continues the rapid and targeted expansion of TREES’ dispensary footprint to 8 stores in 2 states.

Total consideration for the acquisition will consist of 4,494,382 shares of common stock, with an ascribed stock price of $0.89 per share, a meaningful premium to the current stock price, and cash. The acquisition is expected to close prior to the end of this calendar year, subject to obtaining Colorado Marijuana Enforcement Division and local licensing approval.

Adam Hershey, Interim CEO of TREES, said, “We’re excited to add another strong, above-average revenue producing dispensary to our expanding footprint. Green Man is conveniently located and easily accessible, enabling us to serve a broader cross section of customers in the Denver metro area.”

ABOUT TREES

TREES is the parent company of a vertically-integrated cannabis company and multi-state operator in the U.S., operating in Colorado and Oregon. TREES is pursuing a roll-up strategy of licensed assets in mature markets, while maintaining loyal, local customer bases. TREES currently owns and operates a light-deprivation greenhouse cultivation facility in Boulder, Colorado, a dispensary in Englewood, Colorado and three dispensaries in Portland, Oregon. TREES is in process of obtaining approval for the recently announced Green Tree transaction, which upon closing will further expand both its retail and cultivation assets. TREES trades on the OTCQB market under the symbol CANN. For more information, please visit treescann.com.

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' 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' 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@treescann.com

FAQ

What is TREES Corporation's stock symbol?

TREES Corporation trades under the stock symbol CANN.

What does the acquisition of Green Man Cannabis entail?

TREES will acquire Green Man Cannabis for 4,494,382 shares at $0.89 each and cash.

When is the acquisition of Green Man Cannabis expected to close?

The acquisition is anticipated to close by the end of the calendar year, subject to regulatory approvals.

How will the acquisition impact TREES Corporation's market presence?

The acquisition will increase TREES' dispensary locations to eight, enhancing its ability to serve customers in Denver.

What are the potential risks associated with the acquisition?

Potential dilution of existing shareholders due to the issuance of a large number of shares.