Trees Corporation announced that it has entered into a securities purchase agreement with lead investor TCM Tactical Opportunities Fund II LP, a fund managed by Troob Capital Management LLC in a private placement of Senior Secured Convertible Note for gross proceeds of $10,587,250 on September 15, 2022. The Notes will bear interest at an annual rate of 12% and will mature on September 16, 2026. Investors have the option to convert up to 50% of the outstanding Notes into common stock at a fixed conversion price equal to $1.00 per share.

Payment on the Notes is secured by substantially all of the assets of the Company pursuant to a Security Agreement by and among the Company and the Investors.