MedMen Enterprises Inc. (MedMen or the Company) (CSE: MMEN) (OTCQB: MMNFF) (FSE: A2JM6N) today announced that it has revised a previously announced agreement to sell a portion of its real estate assets. MedMen previously announced that it would sell three properties to newly formed Treehouse Real Estate Investment Trust, Inc. (Treehouse). Under the revised transaction MedMen expects to sell one property to Treehouse and two properties to Stable Road Capital. The sale to Stable Road Capital would take place as soon as practical. The sale to Treehouse would take place following capitalization of Treehouse through a private placement. The economics of the transaction are not expected to change.
The sale of two properties to Stable Road Capital is expected to generate approximately US$8.5 million of proceeds to the Company after repayment of debt. The sale of one property to Treehouse is expected to generate approximately US$4.0 million of proceeds to the Company after repayment of debt. Together, the transactions are expected to net the Company US$12.5 million. Additional real estate assets in MedMens portfolio are expected to be sold to Treehouse over the next 12 months.
Treehouse is a real estate investment vehicle that intends to capitalize on the cannabis industrys continued growth. Investors in Treehouse are expected to include Stable Road Capital.
The properties sold to Stable Road Capital and Treehouse will be leased backed to MedMen or its subsidiaries at market rates under long-term leases.
The two properties comprising the transaction to Stable Road Capital are:
- MedMen Abbot Kinney “ the only cannabis store in what GQ calls the Coolest Block in America, 1308-1312 Abbot Kinney Blvd., Venice, California.
- MedMen Downtown Las Vegas “ the Companys first branded store in Las Vegas in the heart of the citys Arts District and near the Fremont Street Experience, 823 S. 3rd Street, Las Vegas, Nevada.
The one property comprising the expected transaction to Treehouse is:
- MedMen Beverly Hills “ the store is in a bustling shopping district adjacent to the city of Beverly Hills, 106-110 S. Robertson Blvd., Los Angeles, California.
MedMen Enterprises is a leading cannabis company in the U.S. with assets and operations across the country. Based in Los Angeles, MedMen brings expertise and capital to the cannabis industry and is one of the nations largest financial supporters of progressive marijuana laws. Visit http://www.medmen.com
ABOUT STABLE ROAD CAPITAL:
Stable Road Capital is a family office employing an opportunistic approach to fundamental value investing. The Firm focuses on acquiring and investing in high quality operating businesses, assets and funds. While the Firm is generally industry agnostic, Stable Road Capital has dedicated considerable resources to advising and investing in the cannabis sector, focusing on large vertically integrated players, individual brands, and industry specific private equity funds. Visit https://www.stableroadcapital.com/
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain forward-looking information within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only MedMens beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of MedMens control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or may contain statements that certain actions, events or results may, could, would, might or will be taken, will continue, will occur or will be achieved. The forward-looking information and forward-looking statements contained herein may include, but is not limited to, information concerning the proposed sale and leaseback of certain MedMen properties, including the contemplated timing and terms thereof and the contemplated impact of the same on the financial position of MedMen.
By identifying such information and statements in this manner, MedMen is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of MedMen to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, MedMen has made certain assumptions.
Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: inability to locate suitable acquisition targets; adverse changes in the public perception of cannabis; changes in consumer demand for cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets in which the Company operates; adverse changes in applicable laws; adverse changes in the application or enforcement of current laws, including those related to taxation; increasing costs of compliance with extensive government regulation; changes in general economic, business and political conditions, including changes in the financial markets; risks related to licensing, including the ability to obtain the requisite licenses or renew existing licenses for the Companys operations; dependence upon third party service providers, skilled labor and other key inputs; risks inherent in the agricultural and retail business; intellectual property risks; risks related to litigation; dependence upon senior management; and the other risks disclosed in the Companys public filings. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
Although MedMen believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.
Key assumptions used herein are that the proposed sale and leaseback of the applicable MedMen properties will be completed, including on the current terms and anticipated timing. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and MedMen does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to MedMen or persons acting on its behalf is expressly qualified in its entirety by this notice.
SOURCE: MedMen Enterprises
Briana Chester, (424)
Stéphanie Van Hassel, (323) 705-3025
of Investor Relations