Trees Corporation (NEO:TREE.AQN) has announced the completion of a non-brokered private placement of 200 company units, at a price of $1,000 per unit, raising gross proceeds of about C$200,000.
The Canadian cannabis company said proceeds from the offering will be directed towards general working capital requirements and the opening of its next Trees Cannabis location at 3812a Bloor Street West in Toronto, which is anticipated later this year.
Trees noted that the closing is expected to form part of a larger offering for gross proceeds of up to C$1 million.
READ: Trees Corporation receives license to operate in British Columbia and begins closing its Vancouver Island retail acquisitions
Each unit of the financing consists of one 12.0% secured convertible promissory note bearing a principal amount of C$1,000, convertible into Trees common shares at a conversion price of C$0.015 per common share and maturing 36 months from the closing of the private placement, as well as 66,667 company common share purchase warrants, with each warrant entitling the holder to purchase one Trees common share, at a price of C$0.015 per share, until October 20, 2025.
The company added that if during the term of the convertible notes, the volume weighted-average share price of the common shares on the Neo Exchange for 20 consecutive trading days equals or exceeds C$0.06, Trees may, upon 30 days' prior notice, convert the convertible notes into common shares at the conversion price of $0.015 (subject to customary adjustments), in whole or, from time to time, in part.
In the event that the volume-weighted average price of the common shares on the NEO for 20 consecutive trading days equals or exceeds $0.06, the company may, upon 30 days prior notice, accelerate the expiry of the warrants to a date that is 30 days from the date of the notice.
As well, Trees said it paid a finder's fee of C$7,000 in cash to certain finders in connection with the closing of the private placement.
All securities issued and issuable in connection with the closing of the private placement will be subject to a four-month hold period ending February 21, 2023.
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