Mr. Jeff Holmgren reports

TREES REPORTS ANNUAL FINANCIAL RESULTS

Trees Corp. has released its annual financial results for the 15-month period ended March 31, 2023.

Highlights for the 15 months ended March 31, 2023:

• Corporate retail sales of $11.5-million for the current period;
• System-wide sales (1) of $16.6-million in the current period;
• 20-per-cent growth in corporate same-store retail sales for the three months ended March 31, 2023, compared with the comparative period in 2022, and 20-per-cent system-wide (1) same-store-sales growth over the same period;
• Closing of the company's five-store acquisition in British Columbia completed in May, 2023;
• 14 Trees Cannabis branded stores currently operating on the date of this release.

"We are thrilled to report strong results with continued growth year over year in same-store sales," said Jeff Holmgren, president and chief financial officer of Trees.

Mr. Holmgren added, "With the closing of our five Trees brand licensed store acquisition in B.C. in May, our revenue and gross profit have increased substantially, creating momentum for continued growth ahead during a time where corporate consolidation opportunities have never been better."

Consolidated financial statements and management's discussion and analysis

The results discussed herein are a summary and are qualified in their entirety by reference to the company's annual consolidated financial statements and accompanying notes for the 15 months ended March 31, 2023, and the 12-month period ended Dec. 31, 2022, and related management's discussion and analysis of financial condition and results of operations, copies of which are available under the company's profile on SEDAR and the company's investor relations website.

Change to the financial year-end

During the 12 months ended Dec. 31, 2022, the company elected to change its fiscal year-end to March 31 from Dec. 31. The transition year presented herein is 15 months and includes the period from Jan. 1, 2022, to March 31, 2023. The company's objective was to obtain its annual financial statement audit during a less resource constrained time of the year. The interim and annual reporting periods of the transition year have been changed based on the new fiscal year-end date. Comparative periods presented in these financial statements are not entirely comparable due to change in fiscal year-end.

About Trees Corp.

Trees is a cannabis company at the intersection of community, content and commerce. Publicly traded on the CBOE Exchange, Trees offers a differentiated retail experience that aims to educate, amplify and unlock emerging consumer segments and need states that allow Trees to uniquely engage the 360-cannabis consumer. The company currently has 14 Trees branded storefronts in Canada, including nine stores owned and operated in Ontario and five stores owned and operated in British Columbia.

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