LOS ANGELES–(BUSINESS WIRE)–Treehouse Real Estate Investment Trust, Inc. (“Treehouse” or the “Company”) announced today that it has completed its private placement of 2,067,274 shares of its common stock for aggregate gross proceeds of approximately $45.5 million. Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS), Compass Point Research & Trading, LLC, and Northland Securities, Inc. acted as the placement agents for the private placement. The Company also announced today that it has executed a term sheet with a federally-insured commercial bank for a debt facility.
“Treehouse is excited to announce another capital raise as well as executing a term sheet for a future debt facility from a federally-insured commercial bank,” said Brian Kabot, Stable Road Capital Chief Investment Officer and Treehouse Board Member. “The additional proceeds we’ve received increases our capital base to continue executing cannabis-related real estate acquisitions in a scaled manner. Our debt facility term sheet is not only a big step for Treehouse, but a big step for the whole industry. We are witnessing federally-regulated lenders enter the cannabis industry and we couldn’t be more excited to be a part of it.”
In addition to the private placement, the Company has also signed a term sheet for a debt facility with a federally-insured commercial bank. The planned debt facility expects to carry a 6.1% interest rate over a five-year term and expects to provide accretive financing for Treehouse to efficiently manage its balance sheet.
The Company intends to use the net proceeds from the private placement and debt facility to fund additional cannabis real estate acquisitions across the U.S., which is estimated to generate $80 billion in cannabis sales by 2030 according to Cowen, Inc. The Company will seek to continue acquiring real estate across several recreational and medical cannabis states, including Arizona, California, Florida, New York and Nevada, with a focus on retail-related properties.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the common stock or any other securities of the Company.
Treehouse Real Estate Investment Trust, Inc. is a newly-organized, externally managed real estate investment company focused on the acquisition, ownership and management of specialized retail and industrial properties leased to experienced, state-licensed operators for their regulated adult-use and medical-use cannabis facilities. Visit http://www.TreehouseREIT.com to learn more.
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements can be identified by words like “may,” “will,” “likely,” “should,” “expect,” “anticipate,” “future,” “plan,” “believe,” “intend,” “goal,” “seek,” “estimate,” “project,” “continue” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, changes in the condition of the U.S. economy and, in particular, the U.S. real estate market.
The forward-looking statements included in this press release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
SOURCE: Treehouse Real Estate Investment Trust, Inc.
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