MedMen CEO Says 'Future Has Never Been Brighter' On Heels Of $16M Private Placement Deal

MedMen Enterprises Inc. MMEN MMNFF raised CA$20 million ($16.05 million) by selling units at a price of CA$0.40 per unit.

The cannabis retailer plans to use the raised money to advance its operations in Florida. At the moment, MedMen owns 16 leased dispensary locations with four operational dispensaries in the Sunshine State, touting an annual production capacity of 8,000 pounds.

Under the non-brokered private placement, each unit comprised of one class B subordinate voting share and one share purchase warrant. Each warrant enabled the holder to buy one share at a price of CA$0.50 in the following three years since the issuance.

With Florida cannabis regulations that allow cannabis retailer to sell only the products that have been manufactured in-house, MedMen wants to increase its production.

It will also use the proceeds to support:

1. Advancing its facilities to reach cultivation capacity of 22,000 pounds annually;

• Boosting production capacity to enable the sale of Mary’s Medicinals line of products and Dixie Brands’ edibles;
• Reaching 15 operational stores in Florida within the next year;

Furthermore, MedMen will also use the raised money to fund some expanses in relation to launching stores in Massachusetts, California, and Illinois, and for standard corporate activities.

 “This past year we have made tremendous progress on our turnaround plan with our cost cutting initiatives, gross margin expansion and focusing investments on our highest ROI opportunities,” Tom Lynch, Chairman and CEO of MedMen stated. “MedMen’s future has never been brighter. We believe we have the most recognizable brand in cannabis, an actionable strategic growth plan and a disciplined management team that knows how to execute this turnaround.”