Connect with us

Hi, what are you looking for?

Thursday, Apr 18, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Trees to acquire Camp Cannabis for $780K

The deal will expand the retailer’s footprint by around 40%

Trees to acquire Camp Cannabis for $780K
Camp Cannabis shop in Milton, Ontario. Photo via Trees

Trees Corporation (NEO: TREE) is set to acquire all the retail locations of Camp Cannabis, expanding its store footprint by around 40 per cent.

On Monday, the company said that its wholly owned indirect subsidiary, OCH Ontario Consulting Corp., has made a deal to buy all the shares of Bernard Cann Ltd., doing business as Camp Cannabis.

Camp Cannabis currently owns shops in Ontario municipalities, including Burlington, Milton and Kanata, with a fourth location in Gloucester expected to open soon.

Trees has agreed to pay a total of $780,000, consisting of 2.4 million common shares, around $73,000 in cash and a $350,000 unsecured debenture paying out 7.5-per-cent interest compounding annually.

Trees CEO Micheal Klein says the acquisition helps his brand to expand retail footprint, as it builds upon his company’s strategy of engaging the “cannabis curious consumer.”

“The definitive agreement with Camp is a crucial step and the beginning of our planned growth strategy through accretive consolidation,” Trees president Jeff Holmgren said.

Trees currently owns 11 stores in Canada, including seven in Ontario and four in British Columbia.

The transaction still needs approval from regulatory bodies including the Alcohol and Gaming Commission of Ontario, and the NEO Exchange.

Read more: Ontario releases updated rules to allow in-house retail cannabis brands

Read more: Ontario sets clearer rules against pay-to-play retail deals

 

Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Natalia Buendia Calvillo on Twitter

natalia@mugglehead.com

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Cannabis

This awesome one-day function at the Harbour Event Centre on the city's waterfront featured over 35 different brands and more

Cannabis

The mayor had previously said she did not approve of the idea, but Surrey's City Council has made up its mind

Cannabis

There were people inside the shop at the time but no injuries have been reported

Cannabis

Carrying up to 25 grams is now perfectly legal and cannabis clubs will start small-scale distribution in July