Canadian cannabis retailer Trees Corporation (NEO: TREE) has completed its previously announced acquisition of Miraculo Inc.
What Happened?
Under the terms of the agreement, Miraculo amalgamated with 1000101203 Ontario Inc., a wholly-owned subsidiary of the company to form an amalgamated entity in order to carry out a three-cornered amalgamation whereby Trees acquired all of the issued and outstanding shares of Miraculo.
Each common share in the capital of Trees Subco was exchanged for one common share in the capital of Amalco.
The Miraculo shares held by the shareholders of Miraculo were exchanged on a pro rata basis for an aggregate of 13.6 million common shares in the capital of Trees and an aggregate of 6.82 million warrants to purchase Trees shares exercisable at a price of $0.11 per share until December 31, 2024.
On closing of the amalgamation, Michael Klein, former CEO of Miraculo, was appointed as CEO of the company. In addition, both Klein and G. Scott Paterson have been appointed to the board of directors of the company.
Why It Matters?
"By combining Trees and Miraculo, we have created a 'next now' cannabis company at the intersection of content, community, and commerce. Integrating our technology, data, storytelling, and fast-growing retail footprint, we aim to unlock and capture emerging consumer segments across our platforms," Klein explained.
Jeff Holmgren, president and CFO of Trees, called the closing of the deal a “a significant foundational element of the complete re-envisioning of the Trees brand.”
Miraculo is an integrated media, technology and consumer product company that addresses the needs of underrepresented audiences in the medical cannabis and CBD markets.
It has launched several verticals including "cannabisMD.com", a consumer-education platform designed to help guide consumers on their exploration of the benefits of medical cannabis and CBD, and "askCMD.com", a proprietary recommendation engine guiding consumers to the CBD products that best fit their needs.
What’s Next?
“Trees will be a new kind of cannabis company in an industry beset by a narrow definition of the consumer,” Holmgren explained. “We are creating a more inclusive environment for the cannabis curious while remaining a leader in the adult consumption market."
Photo: Courtesy of Kimzy Nanney on Unsplash
