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.
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