MedMen enters credit agreement with private-equity
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MedMen Enterprises Inc. said Friday it has entered an agreement with funds managed by cannabis investor and private-equity firm Gotham Green Partners for a senior secured convertible credit facility of up to $250 million. MedMen Chief Executive Adam Bierman said the money will be used for general working capital, including making some of its retail licenses operational, with a focus on Florida, integrating other recent or pending transactions, including those related to PharmaCann LlC, expanding geographically through new acquisitions and for other purposes. The notes will be issued in three tranches with the initial tranches expected to be in the amount of $100 million. In the first 12 months, interest may be paid-in-kind by issuing more debt. MedMen shares rose 6.6% in Friday trade, and have gained 17% in 2019, while the S&P 500 has gained 7%.
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