MedMen Enterprises, financially troubled, announced it had raised Canadian $ 20 million ($ 16 million) for 40 cents a unit to fund growth plans in Florida’s medical marijuana market.
The California-based multistate operator stated that as part of the private placement, each unit will consist of a Class B subordinate voting share and a warrant to purchase shares that gives holders the option of an additional three years from the date of issue Buy shares at an exercise price of CA50 cents per share.
In a press release, MedMen said Florida was “a core market in which the company has identified significant potential opportunities”.
MedMen’s Florida holdings include 16 prime rented pharmacy locations – including 10 fully expanded stores – with four operational pharmacies.
The company also has “underutilized manufacturing facilities,” which currently produce approximately 8,000 pounds of cannabis annually.
MedMen plans to use the funds for private placements to:
- Expand and increase the use of existing production facilities with the aim of increasing annual growing capacity from £ 8,000 to £ 22,000.
- Increase production capacity and enable the introduction of Mary’s Medicinals products and Dixie Brands food products.
- Once the capacity expansion is complete, 15 patient operations will have to open in Florida within the next year.
The proceeds will also be used to fund the opening of locations in California, Illinois and Massachusetts and for general corporate purposes.
MedMen has reduced its share of assets elsewhere.
In February, Massachusetts-based Ascend Wellness Holdings (AWH) announced that it had acquired an 86.7% stake in MedMen’s New York cannabis operation for $ 63 million.
Multistate operator AWH has the option to purchase the remaining equity of the New York business for $ 10 million pending the launch of an adult marijuana market in the state.
MedMen trades on the Canadian Stock Exchange under the ticker symbol MMEN and on the US over-the-counter markets as MMNFF.