Medmen Enterprises Inc OTCMKTS: MMNFF is a cannabis retailer with operations across the U.S. and flagship stores in Los Angeles, Las Vegas and New York. MedMen’s mission is to provide an unparalleled experience that invites the world to discover the remarkable benefits of cannabis because a world where cannabis is legal and regulated is a safer, healthier and happier world.
Medmen Enterprises Inc OTCMKTS: MMNFF On May 23, 2019 announce that, further to its press release dated April 23, 2019, MedMen has been advanced an additional US$80,000,000 in gross proceeds pursuant to the US$250,000,000 secured convertible credit facility (the “Facility”) with Gotham Green Partners, an investor in the global cannabis industry.
MedMen has issued to the lenders additional convertible senior secured notes (“Notes”), co-issued by the Company and MM CAN USA, Inc., a subsidiary of the Company (“MM CAN”), with a conversion price per Subordinate Voting Share of the Company equal to US$3.29 per share. The lenders have also been issued 10,399,851 share purchase warrants of the Company (“Warrants”), each of which is exercisable to purchase one Subordinate Voting Share of the Company for a period of 36 months from the date of issue. The number of Warrants issued represents an approximate 50% Warrant coverage. The exercise price of 75% of such Warrants is US$3.718 per share, with the remaining 25% of such Warrants having an exercise price per share equal to US$4.29. As additional consideration for the purchase of the Notes, at the time the lenders were paid an advance fee of 1.5% of the principal amount of the Notes purchased.
The Notes and the Warrants, and any Subordinate Voting Shares issuable as a result of conversion of the Notes or exercise of the Warrants, will be subject to a four month hold period from the date of issuance of such Notes or such Warrants, as applicable, in accordance with applicable Canadian securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.
Medmen Enterprises Inc OTCMKTS: MMNFF On May 29, 2019 released its consolidated financial results for the third quarter of fiscal 2019. All financial information for the 13 week period ended March 30, 2019 is reported in U.S. dollars, unless otherwise indicated.
“Over the past nine years, MedMen has built the most valuable retail brand in the cannabis industry by taking advantage of the land grab opportunity and scaling with speed to secure as many flagship assets as possible,” said Adam Bierman, MedMen co-founder and chief executive officer. “We continue to march onward towards profitability. The biggest driver for this phase of the business remains revenue, which continues to increase significantly with new store openings and same store sales growth. Where we are impressively ahead of schedule is in leveraging our scale to create greater operational efficiencies across the organization. Execution keeps improving while corporate SG&A is decreasing.”
Since going public one year ago, MedMen has established a track record of success, including achieving a 7% market share in California (inclusive of revenue from pending and pre-closing revenue from recently closed acquisitions), an $11 billion cannabis market. The Company is slated to open 15 new locations across the U.S. during the remainder of calendar 2019. Of the planned locations, 12 will be in Florida, where MedMen is licensed for up to 35 locations.