MedMen's New York Subsidiary Gets $73M From Ascend Wellness To Repay Debt

MedMen Enterprises Inc. MMEN MMNFF confirmed Friday its subsidiary in New York will obtain a $73 million investment from Ascend Wellness Holdings LLC, a multi-state cannabis operator.

“We believe the proposed transaction will bring fresh capital and a new perspective to New York’s medical marijuana program and its patients,” AWH Founder Abner Kurtin stated.

Deal Details

In relation to the investment, Ascend Wellness will direct MedMen NY Inc.'s activities pending regulatory authorization of the transaction.

Under the investment agreement, MedMen NY will undertake around $73 million of MedMen’s current secured debt, and Ascend Wellness will make a $35 million cash investment in MedMen NY.

Furthermore, Ascend Wellness New York will issue a senior secured promissory note in favor of MedMen NY’s senior secured lender in the amount of $28 million, secured by Ascend Wellness.

Ascend Wellness will obtain a controlling interest in MedMen NY of around 86.7% of the equity in MedMen NY, and would also be given an option to buy the rest of the interest.

To compensate for the extra equity in MedMen NY, Ascend Wellness must invest an extra $10 million, which should also be used to repay MedMen NY’s senior secured lender once recreational cannabis sales start in its dispensaries.

Posted In: CannabisNewsPenny StocksMarketsAbner KurtinAscend Wellness To Invest In MedMen New Yorkcannabis industrycannabis saleslegal marijuanamarijuanamarijuana stocksMedMen Ascend Wellness HoldingsMedMen To Repay Its Secured DebtMedMen’s New York Subsidiary Receives InvestmentMedMen’s New York Subsidiary To Obtain $73 Million Investment From Ascend Wellness Holdings

BENZINGA CANNABIS CAPITAL CONFERENCE & AWARDS

The Benzinga Cannabis Awards are coming back to the September 27-28, 2023 Cannabis Capital Conference to celebrate the NEWCREATIVE, INNOVATIVE, and OUTSTANDING companies of the cannabis industry.

  • Earn global recognition for your achievements.
  • Shine a spotlight on the people around you that deserve their moment.
  • Celebrate with the newest, hottest and most successful in the cannabis industry.

Nominate or apply NOW and help us celebrate the peoplesolutions, and companies leading the way in cannabis!

Join us on September 27-28, 2023 at Chicago Marriott Downtown Magnificent Mile in Chicago, IL.