August 11, 2023


Record revenue 106% higher than the same period in the prior year, with five consecutive quarters of gross margin improvement leading to first quarter of positive operating cashflow and Adjusted EBITDA(1).

TORONTO, Aug. 11, 2023 /CNW/ – Trees Corporation (CBOE: TREE) (the “Company” or “Trees“), is pleased to announce its first quarter financial results for the three month period ended June 30, 2023.


  • All-time high revenue of $4.05 million, a 106% increase from the comparative period in 2022 and a 47% increase from the three months ended March 31, 2023.
  • Record gross profit of $1.4 million (34% of revenue), a 101% increase from $0.7 million for the comparative period in 2022 (33% of revenue).
  • Net loss from operations of $0.6 million ($0.003 per share) in the Quarter compared to a net loss of $0.7 million ($0.006 per share) in the comparative period in 2022.
  • Adjusted EBITDA(1) for the Quarter of $0.11 million compared to $0.05 million for the comparative period in 2022.
  • Cash provided by operating activities in the Quarter of $0.08 million, a $0.8 million increase from the $0.55 million cash outflow recorded in the comparative period in 2022.

“During the first quarter ending June 30, 2023, Trees achieved positive operating cashflows, record revenue and gross margin and positive Adjusted EBITDA(1) as a result of our disciplined focus on key operating strategies and objectives” said Jeff Holmgren, President and CFO of Trees. “Trees has demonstrated from the results of this quarter, that it is firmly on a path for long- term profitable growth.  With the added financial and operational scale from the previously announced business combination with FOUR20 (defined below), we are excited for the future as we emerge as one of the largest cannabis retailers in Canada.”

On July 12, 2023, Trees and 420 Investments Ltd. (“FOUR20“) entered into a business combination agreement, pursuant to which Trees and FOUR20 will amalgamate, constituting a reverse takeover of Trees by FOUR20 under the policies of Cboe Canada, the new business name of the NEO Exchange (the “FOUR20 Transaction“). Completion of the FOUR20 Transaction remains subject to certain closing conditions, including receiving approval from shareholders, Cboe Canada and the provincial regulators. Subject to the satisfaction or waiver of all closing conditions, the FOUR20 Transaction is expected to be completed on or before October 15, 2023.

(1)Adjusted EBITDA is a non-IFRS financial measure, see heading ‘Specified Financial Measures’ and ‘Adjusted EBITDA’ for further guidance. 

Selected Financial Information

Three Months Ended
June 30, 2023
Three Months Ended
June 30, 2022
Revenue from retail sales4,048,6411,966,3402,082,301106 %
Revenue from wholesale accessory sales47,23927,65919,58071 %
Other revenue66,461105,214(38,753)100 %
Total revenue4,162,3412,099,2132,063,12898 %
Total gross profit1,411,776701,271710,505101 %
Gross profit margin from product sales34 %33 %0.5 %2 %
Operating expenses1,022,591259,944762,647293 %
General and administrative expenses156,243947,977(791,734)(84 %)
Loss from operations(555,645)(689,877)134,23219 %
Loss per share (basic)(0.003)(0.006)0.00654 %
Loss per share (diluted)(0.003)(0.006)0.00654 %

Consolidated Financial Statements and MD&A

The results discussed herein are a summary and are qualified in their entirety by reference to the Company’s condensed interim consolidated financial statements and accompanying notes for three months ended June 30, 2023 and the fifteen month period ended March 31, 2023, and related management’s discussion and analysis of financial condition and results of operations, copies of which are available under the Company’s profile on SEDAR and the Company’s Investor Relations website at


Certain specified financial measures in this earnings release, including Adjusted EBITDA, are non-IFRS measures and may not be comparable to similar measures reported by other companies. This non-IFRS financial measure should not be considered in isolation or as an alternative for measures of performance prepared in accordance with IFRS.

Adjusted EBITDA

Adjusted EBITDA is a non-IFRS financial measure that the Company uses to evaluate its operating performance. Adjusted EBITDA provides information to investors, analysts, and others to aid in understanding and evaluating the Company’s operating results in a similar manner to Management. Adjusted EBITDA is defined as loss and comprehensive loss before finance costs; gains and losses on fair value adjustments; depreciation; impairments, lease remeasurements and other costs; and certain one-time transaction costs and restructuring costs, as determined by Management.

The following table reconciles Adjusted EBITDA to net loss and comprehensive loss for the periods noted:

Three Months EndedThree Months Ended
Adjusted EBITDA30-Jun-2330-Jun-22
Net loss and comprehensive loss(555,645)(689,877)
  Finance costs215,941153,871
  Amortization and depreciation449,993410,893
  Transaction costs75,371
  Gain on debt settlements
Adjusted EBITDA110,290(49,742)

About Trees

Trees is a cannabis company at the intersection of community, content, and commerce. Publicly traded on the Cboe Exchange, Trees offers a differentiated retail experience, that aims to educate, amplify and unlock emerging consumer segments and need states that allows Trees to uniquely engage the 360-cannabis consumer. The Company currently has 14 Trees branded storefronts in Canada, including nine (9) stores owned and operated in Ontario and five (5) stores owned and operated in BC.

Non-IFRS Financial Measures

Throughout this MD&A, references are made to non-IFRS financial measures, including system-wide sales, same store sales, earnings before interest, taxes, and depreciation, and amortization (“EBITDA”). These measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-IFRS measures provide investors with a supplemental measure of the Company’s operating performance and therefore highlight trends in Company’s core business that may not otherwise be apparent when relying solely on IFRS measures. Management uses non-IFRS measures in measuring the financial performance of the Company.

System-wide retail sales represents the sum of the revenue reported to Trees by (i) brand licensed retail cannabis stores, which are subject to a brand license agreement providing Trees with a royalty interest, and (ii) Company-owned retail cannabis stores. Management believes this measure is useful to the investment community in evaluating brand scale and market penetration and is used by management of Trees to assess the financial and operational performance of the Company and the strength of the Company’s market position relative to its competitors.

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 FOUR20 Transaction and receipt of shareholder, Cboe Canada, and 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 Cboe Canada has neither approved nor disapproved the contents of this press release and accepts no responsibility for the adequacy or accuracy of this release.

SOURCE Trees Corporation

For further information: Trees Corporation, Jeffrey Holmgren, President and Chief Financial Officer, Email: