Trees Corporation announced a non-brokered private placement of 34,166,665 units at a price of CAD 0.03 per unit for gross proceeds of CAD 1,025,000 on May 9, 2022. Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at a price of CAD 0.05 per share for a period of two years from the date of issuance, subject to an accelerated expiry date at the option of the company in the event that the closing price of the common shares on the facilities of the Neo Exchange Inc. is greater than CAD 0.20 for ten non-consecutive trading days.

Certain directors of the company purchased an aggregate of 6,100,000 units under the private placement. The company paid a finder CAD 14,000 in cash commission and issued certain finders an aggregate of 1,866,666 units in lieu of a cash commission and issued an aggregate of 1,866,666 broker warrants, where each broker warrant entitles the holder thereof to acquire one unit at a price of CAD 0.03 for a period of two years from the date of issuance, subject to acceleration. The securities issued are subject to a hold period expiring September 7, 2022 in accordance with applicable Canadian securities law.