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Trees Seeking Creditor Protection

Trees Corporation is the latest cannabis retail chain to enter creditor protection. The company has 13 Trees-branded storefronts in Canada, with nine stores in Ontario and four in BC.

Late December, Trees announced that the company and its subsidiaries, Ontario Cannabis Holdings Corp., Miraculo Inc., 2707461 Ontario Ltd., OCH Ontario Consulting Corp., and 11819496 Canada Inc. received an order for creditor protection from the Ontario Superior Court of Justice.

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.

Ernst & Young Inc. was appointed to monitor the company and Trees plans to develop a process 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.

For further information: Trees Corporation, Jeffrey Holmgren, President and Chief Financial Officer, Email: jeffh@treescorp.ca

Tags: Cannabis Industry (186), Cannabis Retail (401), creditor protection (1), Trees Corporation (2)