Trees, a multi-state dispensary operator based in Colorado, has agreed to purchase two dispensaries and a handful of marijuana production licenses from Green Tree Medicinals.
The agreement, announced September 19, includes Green Tree Medicinals
stores in Berthoud and Longmont as well as 34,000 square feet of cultivation space and an extraction facility, all of which are located in Boulder. Specifics of the deal weren't disclosed in the announcement, but Trees will pay Green Tree Medicinals a mixture of cash and stock. In Trees' most recent quarterly filing
, it didn't mention the upcoming acquisition of Green Tree Medicinals.
Founded in 2009, Green Tree Medicinals began as a medical marijuana dispensary in Boulder before expanding into a handful of Front Range towns. The company began selling the majority of its dispensary and business licenses following recreational legalization, however, and was down to just two stores by the time it agreed to sell to Trees.
Green Tree Medicinals stores will be converted to Trees locations after the acquisition is approved by state and financial regulators. According to Trees, Green Tree Medicinals founder and co-owner Allyson Feiler will join the Trees board of directors and become the company's chief marketing officer, and co-owner Loree Schwartz will also join the Trees executive team.
According to Trees board chairman Carl Williams, the company will continue looking around Colorado for more marijuana acquisitions.
“It is an exciting time at the Trees organization, as the last couple of years of hard work are beginning to bear fruit. We’ve developed a rich pipeline of target acquisitions and continue to enhance our internal capabilities," he says in a statement announcing the agreement. "We would like to welcome the entire Green Tree team to the organization and see this as one more step towards becoming one of the strongest operational players in the Colorado market."
Originally a standalone dispensary in Englewood, Trees merged in 2021 with publicly traded company General Cannabis,
in a $39.5 million deal based largely on stock holdings. The year before, General Cannabis had purchased a 17,000-square-foot wholesale growing operation in Boulder. It took ownership of the new company, which retained the name Trees. Today, Trees has three dispensaries in Oregon in addition to the Colorado locations.
Colorado marijuana prices and sales have been falling
for over a year, but that hasn't slowed dispensary takeovers. New stores under the Emerald Fields and Starbuds dispensary chains
, arms of publicly owned multi-state operator Schwazze, have both replaced independently owned dispensaries in Denver and Glendale in recent months, while the Clinic, a chain of four Denver-area dispensaries, recently agreed to sell to PharmaCann Inc.
, the company that owns LivWell Enlightened Health dispensaries.