Trees Corporation announced its first quarter financial results for the three month period ended June 30, 2023.
Highlights For The Three Months Ended June 30, 2023 (The “Quarter”):
- All-time high revenue of $4.05 million, a 106% increase from the comparative period in 2022 and a 47% increase from the three months ended March 31, 2023.
- Record gross profit of $1.4 million (34% of revenue), a 101% increase from $0.7 million for the comparative period in 2022 (33% of revenue).
- Net loss from operations of $0.6 million ($0.003 per share) in the Quarter compared to a net loss of $0.7 million ($0.006 per share) in the comparative period in 2022.
- Adjusted EBITDA(1) for the Quarter of $0.11 million compared to $0.05 million for the comparative period in 2022.
- Cash provided by operating activities in the Quarter of $0.08 million, a $0.8 million increase from the $0.55 million cash outflow recorded in the comparative period in 2022.
“During the first quarter ending June 30, 2023, Trees achieved positive operating cashflows, record revenue and gross margin and positive Adjusted EBITDA(1) as a result of our disciplined focus on key operating strategies and objectives” said Jeff Holmgren, President and CFO of Trees. “Trees has demonstrated from the results of this quarter, that it is firmly on a path for long- term profitable growth. With the added financial and operational scale from the previously announced business combination with FOUR20 (defined below), we are excited for the future as we emerge as one of the largest cannabis retailers in Canada.”
On July 12, 2023, Trees and 420 Investments Ltd. (“FOUR20“) entered into a business combination agreement, pursuant to which Trees and FOUR20 will amalgamate, constituting a reverse takeover of Trees by FOUR20 under the policies of Cboe Canada, the new business name of the NEO Exchange (the “FOUR20 Transaction“). Completion of the FOUR20 Transaction remains subject to certain closing conditions, including receiving approval from shareholders, Cboe Canada and the provincial regulators. Subject to the satisfaction or waiver of all closing conditions, the FOUR20 Transaction is expected to be completed on or before October 15, 2023.
About Trees
Trees is a cannabis company at the intersection of community, content, and commerce. Publicly traded on the Cboe Exchange, 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 Company currently has 14 Trees branded storefronts in Canada, including nine (9) stores owned and operated in Ontario and five (5) stores owned and operated in BC.
