TREES CORPORATION FILES FOR CCAA PROTECTION
TORONTO, Dec. 22, 2023 /CNW/ - Trees Corporation (CBOE: TREE) ("Trees" or the "Company"), today announced that the Company and its subsidiaries, Ontario Cannabis Holdings Corp., Miraculo Inc., 2707461 Ontario Ltd., OCH Ontario Consulting Corp., and 11819496 Canada Inc. (together with Trees, the "Trees Group")), have received an order for creditor protection (the "Initial Order") from the Ontario Superior Court of Justice (Commercial List) (the "Court") under the Companies' Creditors Arrangement Act (the "CCAA").
The Trees Group has been actively pursuing additional financing to raise capital to fund its operations, and engaged a financial advisor to assist the Trees Group with reviewing strategic options, including financing options. Following such review and after careful consideration of all available alternatives, and consultation with legal and financial advisors, the directors of the Trees Group determined that it was is in the best interests of the Trees Group to file an application for creditor protection under the CCAA.
The Initial Order includes, among other things: (i) a stay of proceedings in favour of the Trees Group, and (ii) the appointment of Ernst & Young Inc. as the monitor of the Trees Group (in such capacity, the "Monitor").
The Trees Group sought creditor protection under the CCAA in order to receive a stay of proceedings that will allow the Trees Group to work with the Monitor to facilitate the development of an orderly process designed to streamline its operations and conduct a Court-supervised sales process to obtain a going concern solution for its operations and maximize the value of the Trees Group's assets for the benefit of its stakeholders.
The board of directors of the Trees Group will remain in place and management will remain responsible for the day-to-day operations of the Trees Group, under the general oversight of the Monitor.
It is anticipated that Cboe Canada (the "Cboe") will place the Company under delisting review and there can be no assurance as to the outcome of such review or the continued qualification for listing on the Cboe.
Trees is a cannabis company at the intersection of community, content, and commerce. Listed on Cboe Canada, Trees offers a differentiated retail experience, that aims to educate, amplify and unlock emerging consumer segments and need states that allows Trees to uniquely engage the 360-cannabis consumer. The Trees Group currently has thirteen (13) branded Trees storefronts in Canada, including nine (9) stores owned and operated in Ontario and four (4) stores owned and operated in BC.
This press release contains statements that constitute "forward-looking information" within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information.
Forward-looking statements in this document include, among others, statements relating to the Company's continued listing on the Cboe, and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: (a) the Company may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions acceptable; (b) compliance with extensive government regulation; (c) domestic and foreign laws and regulations could adversely affect the Company's business and results of operations; (d) the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of the Company's securities, regardless of its operating peers; (e) adverse changes in the public perception of cannabis; (f) the impact of COVID-19; and (g) general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release.
The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
The CBOE has neither approved nor disapproved the contents of this press release and accepts no responsibility for the adequacy or accuracy of this release.
SOURCE Trees Corporation
Trees Corporation, Jeffrey Holmgren, President and Chief Financial Officer, Email: [email protected]
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