Medmen Enterprises Inc (OTC: MMNFF) remains an attractive company to institutional investors. On Friday, the company signed an agreement for a convertible credit facility of up to $250 million from Gotham Green Partners.
What Happened
MedMen's subsidiary, MM CAN USA, Inc. will issue convertible senior secured notes totaling up to $250 million on a private placement basis. The notes will be issued in three tranches. The initial tranche will total $100 million, while the other two will be equally split into $75 million each and will be issuable at the option of MedMen, subject to certain conditions and share price thresholds.
All notes have a maturity date of 36 months from the closing date, with a 12-month extension feature.
The Cannabis Capital Conference returns to Toronto April 17-18!
“We continue to be impressed with MedMen’s industry leading retail execution and iconic branding. With MedMen’s fortified balance sheet, the Company’s future has never been brighter,†Jason Adler, managing member of Gotham Green Partners said in a press release. “We feel fortunate to have the opportunity to take such a significant stake in MedMen and begin to work actively with the management team and the board to help the Company achieve its goals.â€
Why It's Important
The company plans to use the credit facility for general working capital purposes as well as to operationalize existing retail licenses, integrate assets from recent and still pending acquisitions and to accelerate its geographic expansion.
MedMen has faced some controversy that sent its stock close to all-time lows. The company was recently excluded from the New York Medical Cannabis Industry Association.
In February, it was revealed MedMen engaged a company that might have promoted its stock online, which has attracted the attention of the OTC Markets Group. MedMen said neither the company nor any key insiders sold shares when the alleged promotion took place.
The company has also been issuing shares to fund its operations and expansion efforts, which resulted in a diluted stock price.
Related Links:
Canada Might Be Getting A New Cannabis ETF Dedicated To US Companies
Chicago-Based Grassroots Cannabis Raises M To Expand Operations
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.