Trees Corporation (NEO: TREE) has closed a non-brokered private placement of its 34.17 million at $0.03 per unit for gross proceeds of approximately $1.03 million.
Under the private placement, each unit is comprised of one common share and one-half of one common share purchase warrant of the company.
Each warrant entitles the holder thereof to purchase one common share at $0.05 per common share for a period of two years from the date of issuance, subject to an accelerated expiry date at the option of the company in the event that the closing price of the common shares on the facilities of the Neo Exchange Inc. is greater than $0.20 for ten non-consecutive trading days.
The company intends to use the proceeds of approximately $80,000 for the cash portion of the purchase price of its previously announced proposed acquisition of Barnard Cann Ltd., with the remainder to be used for operating expenses of Trees' retail cannabis stores and general working capital purposes.
The private placement is subject to the receipt of all necessary regulatory and stock exchange approvals. The securities issued pursuant to the private placement are subject to a hold period expiring September 7, 2022, in accordance with applicable Canadian securities law.
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