John Schroyer
A Canadian marijuana merger just announced in July is now officially dead, with no obvious reasons for the deal’s termination.
Toronto-based Trees Corp. (CBOE: TREE) unilaterally pulled out of a merger with Alberta-based 420 Investments Ltd. just four months after the deal was trumpeted by both companies, Trees said in a press release on Tuesday.
Trees gave no reasons for the move, but said the deal was dead as of Nov. 2, and that it was reserving all rights “against 420 with regard to the unilateral termination” of the business combination agreement.
The Trees board of directors “intends to undertake a comprehensive review to identify and consider a range of alternatives and their potential to enhance shareholder value,” the company said in its release. “These alternatives could include, but are not limited to, a merger or business combination with another party, an asset sale, a strategic partnership, or any combination.”
Trees also said there won’t be any sort of defined schedule released by the board under which shareholders could expect the evaluation process to be completed, nor is there any guarantee at this point there will another merger agreement of any sort.
Trees operates 14 cannabis dispensaries in Canada, including nine in Ontario and five in British Columbia.
