MedMen Enterprises Inc. has signed a binding term sheet in respect of certain amendments to the definitive agreements for the up to US$250,000,000 senior secured convertible credit facility led by Gotham Green Partners, an investor in the global cannabis industry.
Concurrent to the amendments, Gotham Green Partners, with participation from Wicklow Capital, has agreed to an additional US$30,000,000 equity commitment, bringing the total financing commitment to US$280,000,000.
To date, Gotham Green Partners has funded US$100,000,000 of the total commitment.
“Both Gotham Green and Wicklow have shown continued confidence in our strategy and recognize the potential ahead,” said Adam Bierman, MedMen co-founder and CEO.
In addition to funding general working capital, MedMen says that the increased financing commitment will primarily be used to:
- Operationalize the balance of the Company’s retail licenses; the Company is licensed for up to 86 retail stores across the U.S., of which 37 are operational today (including the footprint to be acquired through pending acquisitions, subject to customary regulatory approvals);
- Focus on strategic markets, such as Illinois, where the Company anticipates 10 stores after the state transitions from a medical to adult use market in 2020 and pending regulatory approvals associated with the PharmaCann acquisition;
continue expanding the retail presence in Florida, where the Company expects to open 11 additional stores in 2019;
- Remain opportunistic with respect to selective growth initiatives such as expanding the Company’s retail footprint and investing in its delivery and loyalty platforms and
strengthen the Company’s balance sheet
“MedMen’s strategy, brand and performance makes them the clear leader of cannabis retail in the U.S. and we are supportive of management’s vision and plan for growth and profitability,” said Jason Adler, managing member of Gotham Green Partners.
“As their primary capital partner, we will continue to support the company as they bring their iconic brand to new markets.”Cannabis Business Worldwide