Treehouse Real Estate Investment Trust Inc., a private REIT that invests in properties utilized by the cannabis industry, has completed it private offering and private placement of more than 2.5 million shares of common stock for approximately $60.3 million.
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE: LTS), and Compass Point Research & Trading LLC served as initial purchasers and placement agents for the offering and placement.
“Treehouse is incredibly excited to announce the completion of our third capital raise,” said Raymond Lewis, president and chief executive officer. “The additional proceeds we’ve raised increase our capital base to continue acquiring cannabis-use properties as we position ourselves as the preeminent sale-leaseback vehicle targeting both retail and industrial properties for the regulated adult-use and medical-use cannabis industry.”
The company plans to use the offering’s net proceeds to fund additional cannabis real estate acquisitions across the United States. The cannabis industry is expected to generate $75 billion in sales by 2030, according to research conducted by Cowen, Inc.
Headquartered in Los Angeles, Treehouse REIT focuses on the acquisition, ownership and management of specialized retail and industrial properties leased to state-licensed operators for their regulated adult-use and medical-use cannabis facilities. The company was formed as a collaboration between MedMen, a private equity-backed medical marijuana dispensary, and Stable Road Capital, a California-based investment firm.