MedMen Enterprises Inc. (CSE: MMEN) (OTCQB: MMNFF) (FSE: A2JM6N), announced today it has secured prime retail locations with long term leases in Ft. Lauderdale, Miami Beach, West Palm Beach, St. Petersburg and Key West. The company continues to expand its footprint in premium retail districts with high visibility and heavy foot traffic.
Florida is the third most populous state in the U.S. with a rapidly growing medical cannabis market and large potential adult use market. The state has high tourist activity and is home to the largest elderly community in the nation. According to Arcview, medical cannabis sales are estimated to be approximately US$1.4 billion by 2021.
The company also has completed the transaction it announced on June 6, 2018, acquiring a dispensary and cultivation license (the “License”) and related assets from Florida based Treadwell Simpson Partnership and affiliates (“Treadwell Nursery”). The License permits the Company to open 30 (and up to 35 if certain conditions are met) medical marijuana dispensaries in the State of Florida and to conduct cultivation, delivery and manufacturing operations in the State of Florida. As part of the transaction, MedMen has also acquired Treadwell Nursery’s cultivation facility situated on five acres near Orlando. The License is one of only 14 licenses in the state and one of two licenses strategically located in Central Florida and positioned to service the entire state from a distribution standpoint.
“Our entry into Florida through this acquisition demonstrates our growing national footprint as well as our ability to execute,” said Adam Bierman, MedMen chief executive and co-founder. “Our real estate team is hard at work preparing to put MedMen branded stores in the most coveted locations in Florida – locations in highly desirable and defensible market areas with high foot traffic and proximity to popular brand retailers.”
As consideration for the acquisition, the Company will pay US$53 million, half of which is in cash. For the remainder, MedMen has issued 8,549,132 common units of MM Enterprises USA, LLC (the “LLC”), a subsidiary of the Company (the “Redeemable Units”), which by their terms are ultimately redeemable for Class B Subordinate Voting Shares of the Company (the “Subordinate Voting Shares”) starting on January 1, 2019. The LLC has paid Treadwell Nursery US$6,625,000 in cash as of closing date, September 6, 2018, and will pay the same amounts in cash on each of the dates that are three, six and nine months after the closing date.
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 nation’s largest financial supporters of progressive marijuana laws. Visit http://www.medmen.com