TORONTO, Sept. 2, 2022 Trees Corporation is pleased to announce that it is now provincially licensed to operate in British Columbia, having received due diligence approval from the British Columbia Liquor and Cannabis Regulation Branch. Trees will now commence with the closing of its previously announced acquisition of five (5) stores on Vancouver Island pursuant to the terms of the third amended and restated asset purchase agreement between Trees and 1015712 B.C. Ltd. Until such time as the transactions contemplated by the APA close, the 5 stores will continue to operate as Trees Cannabis locations in accordance with the previously disclosed brand license agreement between the parties.
“We are excited to share this very positive news of our approval to operate in the province of British Columbia,” Jeff Holmgren, President and CFO of Trees stated. “Now with a BC operators’ license in-hand, we can quickly move to close the acquisition of the 5 BC stores, which for the month of August, recorded gross sales of approximately $440,000, representing an approximate 50% increase in sales for Trees post-close.”
Trees is a cannabis company at the intersection of community, content, and commerce. Publicly traded, Trees offers a differentiated retail experience, combined with digital platforms that aim to educate and amplify, unlocking emerging consumer segments and need states that allows Trees to uniquely engage the 360-cannabis consumer. The Company currently has 13 Trees branded storefronts in Canada, including eight (8) stores owned and operated in Ontario and five (5) stores operated in BC, subject to the closing of the acquisition of the assets of 101 pursuant to the terms of the APA The closing of the transactions contemplated by the APA is subject to certain conditions precedent, including the receipt of certain licensing approvals and related regulatory consents, the latter of which has now been received in respect of one of the five locations. Now with the completion of due diligence approval from the British Columbia Liquor and Cannabis Regulation Branch, Trees anticipates the receipt of regulatory approvals for the remaining 4 stores imminently. Until such time as the closing of the acquisition of the assets under the terms of the APA, the BC stores will remain subject to a brand license agreement and will be included when reporting System-Wide Retail Sales.
(This information is primarily sourced from Trees Corporation, Inc. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).