TREES Corp Secures New Loan Agreement
Ticker: CANN · Form: 8-K · Filed: Jun 14, 2024 · CIK: 1477009
| Field | Detail |
|---|---|
| Company | Trees CORP (Colorado) (CANN) |
| Form Type | 8-K |
| Filed Date | Jun 14, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 3 min |
| Key Dollar Amounts | $500,000 |
| Sentiment | neutral |
Sentiment: neutral
Topics: debt, financing, material-definitive-agreement
TL;DR
TREES Corp just took out a new loan, adding to its debt obligations.
AI Summary
On June 12, 2024, TREES Corp (Colorado) entered into a material definitive agreement, specifically a loan agreement. This agreement creates a direct financial obligation for the company, indicating it has taken on new debt.
Why It Matters
This filing indicates TREES Corp has taken on new debt, which could impact its financial leverage and future investment capacity.
Risk Assessment
Risk Level: medium — Taking on new debt can increase financial risk for a company, especially if its ability to repay is uncertain.
Key Players & Entities
- TREES Corp (Colorado) (company) — Registrant
- June 12, 2024 (date) — Date of earliest event reported
- Colorado (location) — State of incorporation
FAQ
What is the specific nature of the material definitive agreement entered into by TREES Corp?
The filing indicates the agreement is a loan agreement, creating a direct financial obligation for the registrant.
When was the earliest event reported in this 8-K filing?
The earliest event reported was on June 12, 2024.
What is TREES Corp's state of incorporation?
TREES Corp is incorporated in Colorado.
What is the SEC file number for TREES Corp?
The SEC file number for TREES Corp is 000-54457.
What is the business address of TREES Corp?
The business address is 215 Union Boulevard, Suite 415, Lakewood, CO 80228.
Filing Stats: 740 words · 3 min read · ~2 pages · Grade level 11.2 · Accepted 2024-06-14 16:00:12
Key Financial Figures
- $500,000 — f ("Holder") in the principal amount of $500,000 (the "Note"). The Note bears interest a
Filing Documents
- ea0207856-8k_treescorp.htm (8-K) — 28KB
- ea020785601ex10-1_treescorp.htm (EX-10.1) — 37KB
- ea020785601ex10-2_treescorp.htm (EX-10.2) — 38KB
- ex10-1_001.jpg (GRAPHIC) — 18KB
- ex10-2_001.jpg (GRAPHIC) — 18KB
- 0001213900-24-052868.txt ( ) — 338KB
- cann-20240612.xsd (EX-101.SCH) — 3KB
- cann-20240612_lab.xml (EX-101.LAB) — 33KB
- cann-20240612_pre.xml (EX-101.PRE) — 22KB
- ea0207856-8k_treescorp_htm.xml (XML) — 3KB
01. Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement. On June 12, 2024, TREES Corporation (the "Company") entered into a Senior Secured Promissory Note with an issue date of June 15, 2024 with TCM Tactical Opportunities Fund II LP and/or affiliates thereof ("Holder") in the principal amount of $500,000 (the "Note"). The Note bears interest at the rate of 12% per annum and matures on September 15, 2026. The Note is pari passu to any amount(s) that may become due and payable under those certain Amended and Restated Senior Secured Convertible Promissory Notes issued on December 15, 2023 by the Company in favor of Holder and certain other investors (the "December 2023 Notes"). In the event of liquidation, the Note is elevated in right of payment ahead of the December 2023 Notes as well as any existing Company debts, and payment of the Note is pari passu in respect of payment of that certain Working Capital Note of the Company in favor of Holder issued on December 15, 2023, also in the principal amount of $500,000 ("2023 Working Capital Note"). Holder is a senior secured lender of the Company and the lead investor in connection with the December 2023 Notes. Reference is made to the Form 8-K of the Company filed on December 21, 2023 for a more complete description of the transaction relating to the December 2023 Notes. Also on June 12, 2024, the Company amended and restated the 2023 Working Capital Note with an issue date of June 15, 2024, to adjust the liquidation provision contained therein to align substantially as described above for the Note. The foregoing descriptions of the above agreements do not purport to be complete and are qualified in their entirety by reference to the full texts thereof, which are annexed hereto as Exhibits 10.1 and 10.2 and incorporated herein by reference.
03. Creation of a Direct Financial Obligation
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth in Item 1.01 of this Current Report on Form 8-K regarding the Note is incorporated herein by reference. Item 9.01. Financial Statements and Exhibits . (b) Exhibits. Exhibit No. Description 10.1 Form of Working Capital Note with issue date of June 15, 2024. 10.2 Amended and Restated Working Capital Note dated December 15, 2023 (issue date of June 15, 2024). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 1
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: June 14, 2024 TREES CORPORATION By: /s/ Adam Hershey Name: Adam Hershey Title: Interim Chief Executive Officer 2