Denver-based TREES Corp. (OTCQB: CANN) agreed to acquire GMC LLC, which operates as Green Man Cannabis Dispensary, also located in Denver, for $6.7 million in cash and stock.
The purchase brings TREES’ dispensary footprint to eight stores in two states.
According to company filings with the Securities and Exchange Commission, consideration for the acquisition includes:
- $1.2 million cash at close.
- 4.5 million shares of common stock at a price of $0.89 per share, issuable to GMC members at closing.
- $1.5 million cash, payable over an 18-month period beginning one year after the acquisition closes.
The acquisition is expected to by the end of this year, subject to approval from the Colorado Marijuana Enforcement Division and local licensing approval.
TREES is the parent company of a vertically integrated cannabis company and multistate operator operating in Colorado and Oregon. TREES is pursuing a roll-up strategy of licensed assets in mature markets, while maintaining loyal, local customer bases.
TREES currently owns and operates a light-deprivation greenhouse cultivation facility in Boulder, Colorado, a dispensary in Englewood, Colorado, and three dispensaries in Portland, Oregon.
TREES also is in the process of obtaining approval for its recently announced Green Tree acquisition, which would add another two dispensaries, 34,000 square feet of grow operations and a manufacturing facility in northern Colorado.