According to the two parties, Trees ownership will receive a package valued at $39.5 million, comprising a little over $5.1 million in cash and nearly $35 million in General Cannabis stock. Per the deal, General Cannabis will soon do business as Trees upon approval from the Colorado Marijuana Enforcement Division.
Trees was founded in Englewood in 2017 by Tim Brown, who has since opened two more dispensaries in Portland. Trees plans to pursue another dispensary in Denver, though neither Trees nor General Cannabis disclosed where that future store would be (or how the new firm plans to fulfill the city's social equity requirements for all new marijuana businesses owners).
Brown joined the newly minted Trees board of directors on September 7, the day before the merger was made official.
"We are excited to join the team, because General Cannabis shares our values and our vision. This transaction will allow us to grow – our way," Brown said in April, when the deal was first announced. "We are excited to bring Trees to more customers and to continue to build a business that is by weed people for weed people.”
General Cannabis is publicly traded on the OTCQB market, an over-the-counter market for early-stage and developing companies that aren't listed on NASDAQ or the New York Stock Exchange. The company also owns Colorado wholesale marijuana grower SevenFive Farm; hemp clothing manufacturer Chiefton Supply Co.; marijuana industry security firm Iron Protection Group; and Next Big Crop, a marijuana business consulting firm. However, Trees will be General Cannabis's first step into the dispensary space.
In May, General Cannabis announced that CEO Steve Gutterman was stepping down immediately, with boardmember Adam Hershey filling the role on an interim basis. The company hasn't announced a replacement yet, but board chairman Carl Williams says he is searching for expansion partners in the pot industry.
"We are thrilled to have Tim and team as we embark on our next chapter of growth. Tim’s vision, creativity and deep bench of talent will accelerate our roll-up strategy," Williams says in a statement. "As a vertically integrated public company, Trees sets a strong foundation for our targeted expansion in Colorado and beyond."