Treehouse Real Estate Investment Trust, Inc. (“Treehouse”), a newly organized real estate investment company in 2019 focused on the acquisition, ownership, and management of specialized retail and industrial properties leased for use as regulated adult-use and medical-use cannabis facilities, announced today that it had completed its offering of 6,676,000 shares of its common stock (the “Common Stock”) for aggregate gross proceeds of approximately $133.5 million. Ladenburg Thalmann & Co. Inc., Compass Point Research & Trading, LLC, and Northland Securities, Inc. acted as the initial purchasers/placement agents for the offering.
Treehouse was launched by MedMen Enterprises (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N), a leading cannabis company in the U.S., and Stable Road Capital, a Venice, California-based investment firm with a successful track record in real estate and cannabis. “We were incredibly excited about the launch of Treehouse,” said Stable Road Capital Chief Investment Officer and Treehouse Board Member Brian Kabot. “Our recently completed capital raise positioned us as the preeminent sale leaseback vehicle targeting both retail and industrial cannabis real estate assets. As the U.S. cannabis industry continued to gain significant momentum, Treehouse created an additional capital source to grow the industry and offered opportunities for investors looking to diversify their cannabis exposure. We aimed to build a diversified portfolio of best-in-class properties managed by leading cannabis operators.”
Treehouse was controlled by an independent investment committee, along with an independent board of directors. Key members of the board included: Scott Peterson, former Chief Investment Officer and Co-Founder of Digital Realty Trust; Kenneth Lombard, former Co-Managing Partner at the Canyon Johnson Urban Fund and current Executive Vice President and Chief Operating Officer of Seritage Growth Properties; and Ann Kono, former Chief Information & Risk Officer of Ares Management LLC.
It was expected that Treehouse’s initial sale-leaseback transactions would occur with MedMen. These potential transactions included real estate related to retail stores and cultivation and production facilities. Subsequent to the initial transaction, Treehouse would have had a three-year right of first offer on additional MedMen-owned facilities and development projects.
The Common Stock was offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to accredited investors in the United States pursuant to Regulation D under the Securities Act. The Common Stock had not been registered under the Securities Act or any state securities laws and could not have been offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.
This press release did not constitute an offer to sell or a solicitation of an offer to buy the Common Stock or any other securities and did not constitute an offer, solicitation, or sale in any state or jurisdiction in which such an offer, solicitation, or sale would have been unlawful.
You can read the original press release on Business Wire.