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MedMen Cancels Sale Of 98M Shares On Heels Of Two Cash Positive Quarters

April 26, 2021 3:22 pm
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MedMen Cancels Sale Of 98M Shares On Heels Of Two Cash Positive Quarters

MedMen Enterprises Inc. (CSE:MMEN) (OTCQX:MMNFF) announced Monday that warrants to acquire 97,785,140 Class B Subordinate Voting Shares of the company are canceled.

The move comes following the two consecutive quarters of positive retail cash flow, the Los Angeles-based company said.

Jason Adler, the co-founder and managing partner of Gotham Green Partners, said they are “pleased to forfeit the ‘in-the-money’ warrants as previously agreed,” under a deal between MedMen, Gotham Green Admin 1, LLC, and certain lenders.

“We challenged MedMen to prove they could achieve consecutive quarters of positive retail cash flow, and they hit the ball out of the park,” he added.

MedMen has 658,912,617 shares outstanding.

MedMen Chairman and CEO Tom Lynch said the company’s “future has never been brighter as we continue to execute our turnaround plan and continue to grow our business.

“We’re pleased to be able to amplify the benefits of accomplishing multiple quarters of positive retail cash flow to our shareholders by reversing dilution through the cancellation of nearly 100 million in the money warrants,” he explained.

The cannabis retailer inked an agreement for a convertible credit facility of up to $250 million from Gotham Green Partners back in 2019.

In March 2019, the company obtained an additional equity commitment from Gotham Green Partners in the amount of $30 million, bringing Gotham Green Partners’ total commitment to the company to $280 million.

The company announced an additional $10 million in financing under its senior secured convertible facility led by funds affiliated with Gotham Green Partners in January.

Last month, MedMen raised some CA$20 million ($16.05 million) by selling its units at CA$0.40 per unit.

The funds are intended to boost the company’s operations in Florida.

Photo by davide ragusa on Unsplash

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