Canadian cannabis company Trees this week announced that its scheduled merger with 420 Investments, announced in July this year, has now been ‘unilaterally terminated’.
The pair announced the news in a short press release earlier this week, but offered little insight into why the recently announced tie-up had been abruptly abandoned.
On July 12, Trees announced that it had entered into a ‘business combination agreement’ with 420 Investments, ‘constituting a reverse takeover of the company by 420’.
At the time, 420’s chairman Freida Butcher said that the deal would allow it to ‘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.”
Now the deal has been axed, Trees says that it intends to ‘undertake a comprehensive review to identify and consider a range of alternatives and their potential to enhance shareholder value’, which includes the possibility of another merger ‘or business combination with another party’.
