Canada's Trees And 420 Investments To Merge In A Reverse Takeover

Trees Corporation TREE has entered into a business combination agreement dated July 12, 2023 with 420 Investments Ltd., pursuant to which the company and 420 will amalgamate, constituting a reverse takeover of the company by 420 under the policies of Cboe Canada, the new business name of the NEO Exchange.

The amalgamated company resulting from the completion of the cransaction will be named "420 Investments Ltd." or such other name as directed by 420. Subject to the approval of Cboe Canada, the common shares of the resulting issuer will be listed on Cboe Canada under a new trading symbol to be determined by 420. Prior to the execution of the business combination agreement, the directors, officers and certain significant shareholders of each of Trees and 420 entered into support agreements, pursuant to which such parties have agreed to vote in favor of the transaction contemplated by the business combination agreement at the meetings of the shareholders of Trees and 420, respectively.

Freida Butcher, chair of the board of 420, stated: "We are very proud of the performance of FOUR20 to not only survive the pandemic, but to have grown from 14 stores in 2020 to our current 40 stores. We are very pleased to have found another retailer in Trees with the same values and with stores that will expand our brand in Ontario and allow us to take our first steps into B.C. We are also very pleased to note that upon completion of the business combination, all significant long-term debt other than that tied up in litigation will have been either converted to equity or otherwise eliminated, leaving the company in a strong position to continue its path of strategic growth and service to its customers."

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Photo: Benzinga edit with photos by geralt and lindsayfox on Pixabay

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