MedMen Enterprises has entered into a binding agreement to secure up to $250m senior secured convertible credit facility from US-based private equity firm Gotham Green Partners (GGP).
The company is planning to use the net proceeds to fund the future capital needs of the business.
It will also use the funds to operationalise existing retail licences in Florida where it plans to open 12 new locations. The company is licensed for up to 30 stores in the US state alone.
MedMen also has plans to finance bolt-on acquisitions and investments in core markets to expand its presence, and support the launch in-house branded products across the US.
The cannabis retailer plans to invest in technology and digital infrastructure, such as delivery and loyalty programmes, as well as consolidate the supply chain, and increase cultivation and production capabilities to enhance margins.
MedMen CEO Adam Bierman said: “This strategic partnership with Gotham Green Partners represents another key milestone for MedMen and stems from our long-standing relationship with The Cronos Group and GGP’s brand portfolio.
“The growth capital will be used to operationalise the balance of our footprint and we look forward to creating further alignment with GGP and their global cannabis platform.”
GGP managing member Jason Adler said: “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.
“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.”
MedMen intends to integrate assets acquired through pending transactions including the recently announced PharmaCann deal.
The company signed an agreement in October last year to merge its operations with PharmaCann in an all-stock transaction valued at $682m.
The combined business will have cannabis licences in 12 states, allowing it to operate 79 cannabis facilities. The deal will also enable MedMen to add licences in Illinois, New York, Pennsylvania, Maryland, Massachusetts, Ohio, Virginia and Michigan.