Trees Corporation (NEO:TREE.AQN) announced that it has completed its acquisition of 100% of 2707461 Ontario Ltd (Camp Cannabis) from Barnard Cann Ltd.
The Canadian cannabis company said Camp operates one licensed retail cannabis store in Burlington, Ontario, and is a round two licence lottery winner that has since established a strong loyalty among Burlington shoppers.
"We are thrilled to add Camp Cannabis in Burlington to our growing portfolio of successful Trees branded storefronts in Ontario, now counting 13 stores nationwide,” Trees Corp CEO Michael Klein and president Jeff Holmgren said in a joint statement.
READ: Trees Corp opens newest branded storefront in British Columbia
“With plans to ramp up our acquisition pace in the months ahead while also leveraging the strength of the cannabisMD.com platform, Trees will continue to reach and educate new consumers across ever broadening consumer segments and need states,” they added.
Trees noted the purchase price for Camp consisted of C$25,000 in cash to the vendor, a credit against the purchase price for $50,000 previously advanced to the vendor by Trees, and any working capital deficiency or excess paid in accordance with the sales and purchase agreement.
The company added that Camp has debts (in addition to normal course working capital liabilities) in the amount of about C$380,000, comprised of C$300,000 owing to Trees pursuant to a grid promissory note dated March 11, 2020, as amended, and approximately C$80,000 owing to a third-party vendor.
Trees also said upon closing, a further debt in the amount of C$350,000 owing by the vendor to a creditor was terminated in exchange for the issuance by Trees of an unsecured convertible debenture in the amount of C$180,000 payable to the creditor.
The convertible debenture bears interest at 7.5% compounding annually, payable monthly in cash, matures on the second anniversary of the closing date, and allows for the principal owing thereunder to be convertible into common shares in the capital of Trees at the option of the creditor, no sooner than the first anniversary of the closing date, at a conversion price being: the greater of $0.15; and the closing price of Trees' common shares at the close of trading on the date before the conversion date, less a 10% discount, according to the company.
Trees Corp 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.
Contact Sean at sean@proactiveinvestors.com