MedMen Announces Acquisition of Florida Marijuana License and Cultivation Facility
MedMen to Own One of Thirteen Licenses in Florida, right to open 25 dispensaries
Los Angeles – June 6, 2018 – MedMen Enterprises Inc. (CSE: MMEN) (“MedMen”), the country’s leading cultivator, producer and retailer of state-sanctioned cannabis, today announced that it has signed a definitive agreement (the “Agreement”) to acquire dispensary and cultivation assets from Florida based Treadwell Simpson Partnership and affiliates (“Treadwell Nursery”).
As part of the transaction, MedMen will acquire Treadwell Nursery’s cultivation facility situated on 5 acres in Eustis, Florida and the right to open 25 medical marijuana dispensaries in the State of Florida.
For nearly a decade we have been positioning ourselves to capitalize on enormous market opportunities like this. This acquisition is right in line with our strategy of establishing a presence early on in high potential markets with limited licenses and large populations.
Florida is the third most populous state in the country with a medical marijuana market estimated to reach $1 billion in annual sales by 2020. MedMen has built the best-in-class brand, and we continue to invest in premium assets that solidify our dominant position in the most important cannabis markets in the world.
MedMen employs more than 800 people and currently operates 18 licensed cannabis facilities in cultivation, manufacturing and retail in California, Nevada and New York. The addition of Florida expands the Company’s reach to yet another key market in the fastest growing industry in the country.
As consideration for the acquisition, the Company will pay US$53 million, subject to a working capital adjustment, half of which will be satisfied in cash and the other half of which will be satisfied by way of issuance of common units of MM Enterprises USA, LLC (the “LLC”), a subsidiary of the Company (the “Redeemable Units”), which by their terms are redeemable for Class B Subordinate Voting Shares of the Company (the “Subordinate Voting Shares”). In respect of the cash consideration, the LLC will pay Treadwell Nursery US$6,625,000 on the closing date and on each of the dates that are three (3), six (6) and nine (9) months after the closing date. In respect of the Redeemable Units, the number of units will be based on the lesser of the closing trading price of the Subordinate Voting Shares on the Canadian Securities Exchange as of June 4, 2018 or the two-week weighted average daily closing price prior to the closing of the transaction.
The transaction is expected to close within 90 days and is subject to customary closing conditions, including receipt of state regulatory approvals. If certain regulatory approvals are not obtained, the Company and Treadwell Nursery will have the right to terminate the Agreement.
MedMen is the preeminent cannabis Company in the United States with multiple assets and operations in California, Nevada and New York, which combined account for nearly half of North America’s addressable legal market. MedMen owns and operates licensed cannabis facilities in cultivation, manufacturing and retail, and is one of the most well recognized cannabis brands in the world today. Headquartered in Los Angeles, MedMen employs more than 800 people across the United States. The predecessor to MedMen was founded in 2010 by Adam Bierman and Andrew Modlin, two visionary entrepreneurs who saw not just a tremendous business opportunity in the growing legalization of marijuana, but a chance to re-define our society’s relationship with cannabis. MedMen supports sensible, clear and just drug laws. The Company is the single largest financial supporter of progressive marijuana laws at the local, state and federal levels, giving directly to pro-legalization groups, industry organizations and political candidates.
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