Investors can rejoice in the fact that another firm within the cannabis retail space is about to enter the crowded public markets. Trees Corporation is looking to be the newest name on the block, with the firm proposing to list on the Neo Exchange following an amalgamation with another private operator.
Formerly referred to as Budbank Information Systems, Trees Corp is a retail cannabis operator focused on the province of Ontario. The firm is ran by Jon Conquergood and Jeff Holmgren, whom both previously operated NewLeaf Cannabis, a cannabis retail operator in Alberta prior to its sale to Meta Cannabis in 2018.
The company currently has six locations in the province under the Corner Cannabis banner, with two additional locations awaiting approval to operate. Furthermore, the company has seven unbuilt locations that have conditional approval from the regulator in the province.
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Outside of Ontario, Trees Corp is currently in the process of acquiring five operating cannabis retail locations in the province of British Columbia, pending the close of an acquisition of a numbered company.
The company is currently in the process of conducting a non-brokered private placement in advance of its listing on the Neo, which will see subscription receipts sold at $0.02 per receipt, which will be exchanged for one class A common share. Gross proceeds of at least $2.0 million are to be raised under the financing.
Listing of the firm on the Neo remains subject to certain conditions being met.
The private placement is slated to close November 8, with the potential listing to occur thereafter.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
