Trees Corporation Completes Go Public Transaction
On December 23, 2021, Trees Corporation (the “Company” or “Trees”), an independent retail cannabis operator, and 1287406 B.C. Ltd. (“406”), a reporting issuer under the securities laws of the jurisdictions of Alberta and British Columbia, announced the closing of their business combination (the “Amalgamation”).
In connection with the Amalgamation, the Company closed a non-brokered private placement of subscription receipts of the Company on December 17, 2021. Upon the closing of the Amalgamation, each issued and outstanding common share was exchanged for one common share in the capital of the issuer resulting from the Amalgamation. The common shares of the Company began trading on the Neo Exchange Inc. under the symbol “TREE” on January 11, 2022.
Trees is deeply rooted in the cannabis community and has been a respected voice of advocacy for cannabis legalization. Through its trusted reputation, history and passion for the ‘plant,’ Trees delivers a unique and authentic consumer experience. Trees has 10 branded storefronts in Canada, including six stores owned and operated by Trees in Ontario and four additional stores operated by 1015712 B.C. Ltd. ("101") in British Columbia. Trees has agreed to purchase the assets of 101 pursuant to the terms of the second amended and restated asset purchase agreement (the "101 Purchase Agreement") entered into between Trees and 101. The closing of the transaction contemplated by the 101 Purchase Agreement is subject to certain conditions precedent, including the receipt of certain licensing approvals and related regulatory consents.
During the first quarter of 2022, and subject to the receipt of regulatory approvals, Trees anticipates opening two new owned and operated storefronts in Ontario and anticipates that 101 will open one new storefront in British Columbia under the Trees brand. This increases the total number of Trees storefronts to 13, with additional locations in reserve for continued growth in 2022 and beyond.
Aird & Berlis LLP represented Trees with a team that included Melanie Cole, Liam Tracey-Raymont, Gary Volman, Amy Marcen-Gaudaur, Ryan Cohen, Al Turnbull (Capital Markets), Barbara Worndl (Tax) and Jeremy Burke (Corporate/Commercial).