Trees Corporation (NEO:TREE.AQN) announced that its wholly-owned indirect subsidiary, OCH Ontario Consulting Corp, has agreed to acquire all of the issued and outstanding shares of Barnard Cann Ltd, which is operating as Camp Cannabis.
The company said Camp Cannabis owns and operates licensed retail cannabis businesses at three locations in Ontario -- Burlington, Milton and Kanata -- with a fourth location in Gloucester expected to open soon.
“Camp locations across Ontario allow the TREES brand to expand our retail footprint as we build upon our strategy of being best at engaging the 'cannabis curious' consumer,” Trees Corp CEO Michael Klein said in a statement.
READ: Trees Corp makes further amendments to 101 retail cannabis store purchase; sees immediate acquisition of trademarks
Trees Corp president and chief financial officer Jeff Holmgren also commented, stating: “The definitive agreement with Camp is a crucial step and the beginning of our planned growth strategy through accretive consolidation.”
The company noted the purchase price of the transaction is about C$780,000, which consists of C$73,000 in cash plus up to 2,380,000 Trees common shares and a C$350,000 unsecured convertible debenture bearing interest at 7.5% compounding annually.
The debenture can be converted into common shares of Trees no sooner than the first anniversary of the closing date, at a conversion price of $0.15 or the closing price of Trees common shares on the date before the conversion date, less a 10% discount, whichever is greater.
Trees Corp is an independent retail cannabis operator that is deeply rooted in the cannabis community and has been a respected voice of advocacy that has helped usher in legalization across Canada. Through its trusted reputation, history and passion for the 'plant', the company delivers a differentiated and authentic consumer experience unlike any other.
Contact Sean at sean@proactiveinvestors.com