Trees Corporation (NEO:TREE.AQN) has closed a private placement with gross proceeds of just over $1 million, the company announced.
The cannabis company offered over 34.1 million units, each containing a common share and half a common share purchase warrant, at a price of $0.03 per unit. Whole purchase warrants entitle their holders to purchase an additional share for $0.05 for a period of two years, the company said.
Approximately $80,000 of the proceeds will go towards Trees’ previously announced proposed acquisition of Barnard Cann Ltd, operating as Camp Cannabis, the company said. The rest is expected to be used for operating expenses of retail cannabis stores and for general working capital purposes.
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Camp Cannabis owns and operates licensed retail cannabis businesses at three Ontario locations in Burlington, Milton and Kanata, with a fourth location in Gloucester expected to open soon, Trees said.
Trees paid a finder $14,000 in cash commission and issued certain finders a total of more than 1.8 million units. These broker units issued entitle their holders to purchase additional shares for $0.03.
Certain directors of the company also purchased an aggregate of 6.1 million units. Additionally, the company issued an aggregate of 600,000 units to a former director to settle $18,000 in indebtedness, Trees noted.
Trees is a cannabis company that targets the intersection of community, content and commerce. The company aims to provide a differentiated retail experience, combined with digital platforms cannabisMD.com and askCMD.com that educate and amplify, unlocking emerging consumer segments. The company has 11 Trees branded storefronts in Canada, including 7 in Ontario and 4 in British Columbia.
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