General Cannabis to Create Retail Footprint by Acquiring Trees Dispensaries

• Once complete, the acquisition will add 2 retail locations in Colorado and 3 in Oregon, bring on a seasoned retail team, and create vertical integration in Colorado.
• Upon closing, consolidated revenue is expected to triple. The Company expects to be cash flow positive as all retail locations open and ramp.
• Total consideration for the transaction is $39.5 million, payable 13% in cash and 87% in stock.
• General Cannabis is expanding its convertible debt round to fund the cash required at the closing of the transaction.
• General Cannabis will change its corporate name to Trees.
  

DENVER, April 21, 2021 (GLOBE NEWSWIRE) -- General Cannabis Corp (OTCQB: CANN) today announced that it has entered into a definitive agreement to acquire Trees, a leading cannabis retail operator with dispensaries in Colorado and Oregon. The transaction, which is subject to regulatory approval, will provide the Company with a foundational retail platform from which to expand growth.

The transaction is the latest milestone for General Cannabis, a Colorado-based company whose strategy is to identify, acquire and operate licensed cannabis facilities in mature markets. Over the last year, General Cannabis became one of the first public companies to receive a Suitability Approval from the Colorado Marijuana Enforcement Division to acquire licensed cannabis assets, acquired and integrated SevenFive Farm (a 17,000 square foot light deprivation greenhouse outside of Boulder, CO), strengthened its Board and management team and completed a series of capital transactions which bolstered its balance sheet and added working and growth capital. In addition to SevenFive Farm, the Company operates Next Big Crop, a subsidiary that provides design, consulting and operational services to cannabis cultivation facilities throughout the country. Total revenue for General Cannabis nearly doubled in 2020 from 2019.

Trees currently operates a dispensary in Denver, Colorado and two dispensaries in Portland, Oregon. Revenue for the three existing stores was approximately $18 million in 2020. In the coming months, Trees anticipates opening one additional dispensary in Denver and one in Portland, which would bring its total dispensary count to 5 locations. The addition of the Trees footprint will make General Cannabis vertically integrated in Colorado.