Treehouse Real Estate Investment Trust, Inc. 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., Compass Point Research & Trading, LLC, and Northland Securities, Inc. acted as the placement agents for the private placement.
Treehouse also announced that it has executed a term sheet with a federally-insured commercial bank for a debt facility.
Treehouse is a 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.
“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, Treehouse 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.Cannabis Business Worldwide