A Denver marijuana wholesale and consulting company broke into the retail side of the industry by agreeing to purchase a cannabis retailer with operations in Colorado and Oregon.
General Cannabis Corp. announced Thursday a definitive agreement to pay $39.5 million – 13% in cash, 87% in stock – to buy Trees, which currently operates one dispensary in Denver and two in Portland.
In 2020, the three stores combined to generate $18 million in revenue, according to a General Cannabis news release. Trees intends to open a second dispensary in Denver and a third in Portland.
The news release noted that the deal will make General Cannabis vertically integrated in Colorado.
To pay the cash required at closing, publicly traded General Cannabis expanded its convertible debt round by $2.3 million, to an aggregate of $6.9 million, the press release said.
In total, the company has raised approximately $10 million over the past nine months.
The new company will operate as Trees, but retain its CANN trading symbol on the over-the-counter market.