Treehouse Real Estate Investment Trust, Inc. Announces Completion of Private Placement of Common Stock and Signs Debt Agreement with a Federally-Insured Commercial Bank

LOS ANGELES, March 18, 2019–(BUSINESS WIRE)–Treehouse Real Estate Investment Trust, Inc. (“Treehouse” or the “Company”) announced today that it 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. (NYSE American: LTS), Compass Point Research & Trading, LLC, and Northland Securities, Inc. acted as the placement agents for the private placement. The Company also announced today that it has executed a term sheet with a federally-insured commercial bank for a debt facility.

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. The additional proceeds we’ve received increases our capital base to continue executing cannabis-related real estate acquisitions in a scaled manner.

Brian Kabot, Stable Road Capital Chief Investment Officer and Treehouse Board Member

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, the Company 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.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the common stock or any other securities of the Company.

ABOUT TREEHOUSE:

Treehouse Real Estate Investment Trust, Inc. is a newly-organized, externally managed 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. Visit http://www.TreehouseREIT.com to learn more.

Original Press Release

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