Closes on $63 million (plus the assumption of lease liabilities in Florida) purchase of MedMen’s Florida assets, including MMTC license, 14 Premium Retail Dispensaries, 30,000 square foot Cultivation Facility, inventory and other assets
August 26, 2022 — Green Sentry Holdings, LLC (“Green Sentry” or “the Company”), a Florida-based private cannabis operator, along with its parent company High End Holdings, LLC and MedMen Enterprises Inc (“MedMen”) (CSE: MMEN) (OTCQX: MMNFF), a cannabis retailer with operations across the United States, today announced that they have completed their previously announced arrangement, whereby Green Sentry has acquired all of MedMen’s Florida assets for a total consideration of $63 million plus the assumption of lease liabilities. The purchase was funded with the proceeds of a non-brokered equity raise and a $30 million debt facility from a private lender.
The cash deal includes substantially all of MedMen’s Florida-based assets, including a valid medical marijuana treatment center license issued by the Florida Office of Medical Marijuana Use, a portfolio of 14 premium dispensaries in prime shopping locations with ample parking, and its Eustis, Florida cultivation and processing facility (“Eustis Facility”) with 30,000 square feet of available canopy. The Green Sentry team has been retrofitting the Eustis Facility since March of 2022, and in the coming months, edibles production is expected to launch.
On Friday, August 26, 2022, MedMen locations in Fort Lauderdale (2949 N Federal Hwy), Miami (550 Collins Ave), Orlando (11551 University Blvd), Pensacola (5048 Bayou Blvd), St. Petersburg (326 5th Ave North), West Palm Beach (539 Clematis St), and Tallahassee (1126 Thomasville Rd) will all reopen under Green Sentry’s management and new pricing will be unveiled as well. Store hours will be 10:00 am to 7:00 pm Monday through Saturday and 10:00 am to 5:00 pm on Sunday.
In addition to the ongoing expansion of the Company’s Florida footprint, Green Sentry will launch Sunburn Cannabis, a brand based on the true story of Green Sentry’s CEO and Founder Brady Cobb and his late father. Clyde Walton “Bill” Cobb’s story as a cannabis operator in the 70s and 80s is an authentic part of Florida’s cannabis history. Sunburn is a Florida-focused brand living at the intersection of top-shelf flower and concentrates while embracing the state’s unique culture. Green Sentry expects to launch the Sunburn Cannabis brand in the fourth quarter of 2022.
“As a team, we are beyond excited to re-enter the Florida market, where we have built a presence and a reputation for honoring the plant,” said Brady Cobb, CEO and Founder of Green Sentry. “It’s humbling to see my executive and operational teams stay together to close this transaction and launch Sunburn Cannabis. I’m incredibly proud to launch Sunburn and share my family’s passion and knowledge for the plant with people in Florida. Sunburn is a brand for Floridians by Floridians. I am also thrilled to add some key team members, including our Chairman and my good friend Danny Moses, as well as all of the MedMen employees who have joined our family. We have proven to the market previously that a Florida-focused company can produce the highest quality flower and concentrates, and now we are bringing our products to consumers via 14 of the best retail sites in Florida.”
“We are excited about the growth prospects of the Florida market and we believe in backing strong teams,” said Emily Paxhia, Managing Partner of cannabis-focused investment firm, Poseidon Asset Management. “The Sunburn team has experience coupled with deep knowledge of the market.”
Green Sentry’s cultivation and operations team began working on upgrades to the Eustis Facility in March 2022 and have already seen improvement in flower quality and yields. The Eustis Facility will soon increase HVAC capabilities; and install concrete floors, rolling benches, supplemental HPS lighting and an optimized fertigation system to further improve the quality of its flower. Green Sentry has secured a cultivation facility in Winter Garden, Florida which includes 27,000 sq ft of canopy in a Nexus Hybrid climate controlled Greenhouse plus a full GMP approved lab for hydrocarbon extraction, solventless extraction and the production of other derivative products (“Winter Garden“). Planned renovations for Winter Garden include the installation of supplemental HVAC, environmental controls and additional HPS lighting. Green Sentry also intends to break ground on an initial 75,000-square-foot indoor garden and processing facility at its property in Palm City, with plans to be fully operational by Q3 2023. The Palm City property can accommodate over 600,000 square feet of canopy, an essential addition as Florida licensees eye a potential adult-use constitutional amendment being added to the 2024 presidential ballot.
During the Transaction, Green Sentry was represented by Greg McLaughlin and the law firm of Tripp Scott, P.A. as well as Jeffrey Schlutz from Feuerstein Kulick LLP.