TORONTO, ON – June 14, 2022 – Trees Corporation (NEO:TREE) (the “Company” or “Trees”), a next-now cannabis company at the intersection of community, content, and commerce, is pleased to announce the opening of its newest branded storefront at 695 Alpha Street in Victoria, British Columbia (“Alpha Street”).
“The Alpha Street opening marks the fifth Trees branded location on Vancouver Island, allowing the Trees brand to serve an even larger part of the community,” said Michael Klein, CEO of Trees, adding further “we are extremely proud of the entire Trees team and thrilled to have the Alpha Street location join our expanding retail footprint.”
Trees currently licenses the Trees brand to 1015712 B.C. Ltd. (“101”), the owner and operator of the Trees branded stores in British Columbia in exchange for a royalty pending the closing of an asset purchase transaction between Trees and 101 which will occur following the satisfaction of certain conditions precedent, including regulatory approval.
The Company is also pleased to announce that it has taken further strides in strengthening its balance sheet by entering into debt settlement agreements with two arm’s length creditors pursuant to which it has agreed to issue an aggregate of 20,400,000 common shares in the capital of the Company (the “Common Shares”) at a deemed price of $0.04 per share in settlement of an aggregate of $816,000 owed to such creditors by 1208486 B.C. Ltd., a subsidiary of the Company. The Common Shares issued will be subject to a four month and one day hold period in accordance with applicable Canadian securities laws.
“Balance sheet strength, and the transactional optionality that it provides, is an emerging cornerstone of the Trees strategy and will continue to be a focus in the months ahead as Trees continues to grow its retail presence and value for shareholders,” said Jeff Holmgren, President and CFO of Trees.
Trees is a cannabis company at the intersection of community, content, and commerce. Publicly traded, Trees offers a differentiated retail experience, combined with digital platforms that aim to educate and amplify, unlocking emerging consumer segments and need states that allows Trees to uniquely engage the 360 cannabis consumer. The company has 12 Trees branded storefronts in Canada, including seven (7) stores owned and operated in Ontario and five (5) stores operated in BC, subject to the closing of the acquisition of the assets of 101 pursuant to the terms of the third amended and restated asset purchase agreement between Trees and 101 (the “APA”). The closing of the transactions contemplated by the APA is subject to certain conditions precedent, including the receipt of certain licensing approvals and related regulatory consents.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that constitute “forward-looking information” (“forward-looking information”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information.
Forward-looking statements in this document include, among others, statements relating to the Trees’ expectations regarding the closing of the transactions contemplated by the APA and receipt of regulatory approvals in connection therewith, expectations regarding the Company’s ability to unlock and capture emerging consumer segments across its platforms, expectations regarding the Company’s ability to engage its customers and new consumer segments and need states, the expectation that the Company will be successful in its growth strategy, and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: (a) the Company may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions acceptable; (b) compliance with extensive government regulation; (c) domestic and foreign laws and regulations could adversely affect the Company’s business and results of operations; (d) the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of the Company’s securities, regardless of its operating peers; (e) adverse changes in the public perception of cannabis; (f) the impact of COVID-19; and (g) general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release.
The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
The NEO Exchange has neither approved nor disapproved the contents of this press release and accepts no responsibility for the adequacy or accuracy of this release.
For more information, please contact:
President and Chief Financial Officer