MedMen Enterprises has signed a binding term sheet for a senior secured convertible credit facility of up to $250 million from funds managed by Gotham Green Partners, an investor in the global cannabis industry.
MedMen’s management believes this is the largest investment to date by a single investor in a publicly traded cannabis company with U.S. operations.
“This strategic partnership with Gotham Green Partners represents another key milestone for MedMen and stems from our long-standing relationship with The Cronos Group and GGP’s brand portfolio,” said Adam Bierman, CEO of MedMen. “The growth capital will be used to operationalize the balance of our footprint, and we look forward to creating further alignment with GGP and their global cannabis platform.”
The company 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 30 stores.
- Integrate assets acquired through pending transactions, including those related to PharmaCann, LLC.
- Accelerate geographic expansion through bolt-on acquisitions and investments in core markets.
- Support 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.