MedMen secures US $250m credit facility, closes $20m initial investment

MedMen Enterprises Inc. is pleased to announce that it has entered into definitive agreements in respect of a US$250,000,000 secured convertible credit facility with Gotham Green Partners, an investor in the global cannabis industry.

The facility will be accessed through issuances to the lenders of convertible senior secured notes co-issued by MedMen and MM CAN USA, Inc., a subsidiary, in an aggregate amount of up to US $250,000,000.

Notes will be issuable in up to five tranches, with each tranche being issuable at the option of MedMen, subject to certain conditions and, in certain cases, price thresholds for the Class B subordinate voting shares of the company.

The initial tranche, which MedMen and MM CAN have drawn down, was for gross proceeds of US $20,000,000.

“We are excited to close our investment into MedMen. The company has firmly established itself as the leading cannabis retailer in the United States with an unparalleled physical and brand footprint across the country,” said Jason Adler, managing member of Gotham Green Partners.

“We look forward to working closely with management to accelerate growth and drive margin improvement across the organization.”

MedMen intends to use the net proceeds from drawdowns on the Facility to fund the future capital needs of the business. In addition to funding general working capital, the growth capital will primarily be used to:

  • Operationalize existing retail licenses, with a focus on Florida, where the Company is licensed for 35 stores
  • Integrate assets acquired through pending transactions, including PharmaCann, LLC
  • Accelerate geographic expansion through bolt-on acquisitions and investments in core markets
  • Support the national roll-out of higher-margin in-house branded products
  • Continue to invest in technology and digital infrastructure, with a focus on delivery and loyalty programs
  • Consolidate the supply chain and enhance margins by ramping up cultivation and production capabilities

 Cannabis Business Worldwide

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