Mr. Jeffrey Holmgren reports

TREES REPORTS RECORD FIRST QUARTER FINANCIAL RESULTS

Trees Corp. has released its first quarter financial results for the three-month period ended June 30, 2023.

Highlights for the three months ended June 30, 2023:

• All-time high revenue of $4.05-million, a 106-per-cent increase from the comparative period in 2022, and a 47-per-cent increase from the three months ended March 31, 2023.
• Record gross profit of $1.4-million (34 per cent of revenue), a 101-per-cent increase from $700,000 for the comparative period in 2022 (33 per cent of revenue).
• Net loss from operations of $600,000 (0.3 cent per share) in the quarter compared with a net loss of $700,000 (0.6 cent per share) in the comparative period in 2022.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter of $110,000 compared with $50,000 for the comparative period in 2022.
• Cash provided by operating activities in the quarter of $80,000, an $800,0000 increase from the $550,000 cash outflow recorded in the comparative period in 2022.

"During the first quarter ending June 30, 2023, Trees achieved positive operating cash flows, record revenue and gross margin, and positive adjusted EBITDA, as a result of our disciplined focus on key operating strategies and objectives," said Jeff Holmgren, president and chief financial officer of Trees. "Trees has demonstrated from the results of this quarter that it is firmly on a path for long-term profitable growth. With the added financial and operational scale from the previously announced business combination with 420 (defined below), we are excited for the future as we emerge as one of the largest cannabis retailers in Canada."

On July 12, 2023, Trees and 420 Investments Ltd. entered into a business combination agreement, pursuant to which Trees and 420 will amalgamate, constituting a reverse takeover of Trees by 420 under the policies of Cboe Canada, the new business name of the Neo Exchange. Completion of the 420 transaction remains subject to certain closing conditions, including receiving approval from shareholders, Cboe Canada and the provincial regulators. Subject to the satisfaction or waiver of all closing conditions, the 420 transaction is expected to be completed on or before Oct. 15, 2023.

Consolidated financial statements, and management's discussion and analysis (MD&A)

The results discussed herein are a summary and are qualified in their entirety by reference to the company's condensed interim consolidated financial statements and accompanying notes for three months ended June 30, 2023, and the 15-month period ended March 31, 2023, 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.

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.

We seek Safe Harbor.