Medmen Closes Sale Of Florida Assets To Ex-Bluma Wellness Execs

Medmen Enterprises (CSE: MMEN) has finally closed the sale of its Florida operation, albeit at a reduced price. The firm announced yesterday after the bell that the asset had been sold to a private firm referred to as Green Sentry Holdings.

At the time of announcement in February, the asset, which includes the required license as well as seven dispensaries, inventory, and cultivation operations in the state, was to be sold for a total figure of $83 million in cash. The sale also included a licensing agreement for a two year period from the closing of the transaction, which is subject to a quarterly revenue-based fee.

The deal was also expected to be closed in late April or early May, pending the required governmental approvals.

Fast forward several additional months, and the company has now closed the transaction at just $63 million – a $20 million haircut in a matter of months. That haircut came on the condition that Green Sentry, which is partially owned by Brady Cobb and Michael Bondurant as per public Florida records, assume $4.0 million in certain liabilities. Both Cobb and Bondurant previously operated Bluma Wellness in Florida prior to its sale to Cresco Labs.

“The sale of MedMen’s Florida assets marks an important step in the company’s restructuring efforts designed to provide greater financial flexibility and a stronger, leaner operating structure – and ultimately put us on a path to being EBITDA positive,” Medmen CEO Ed Record said of the sale.

Notably, Florida’s Office of Medical Marijuana Use, frequently referred to as OMMU, has already changed ownership details on the license, with the most recent sales update referring to the license as Green Sentry.

Further details were said to be available in an 8-K filed yesterday, although no such filing could be found.

Medmen Enterprises last traded at $0.07 on the CSE.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Cresco Labs: Stifel Raises Price Target To $21.50 Following Bluma Acquisition

Yesterday morning, it was announced that Cresco Labs (CSE: CL) is entering Florida with its...

Friday, January 15, 2021, 11:53:00 AM

Medmen Signs Term Sheets to Divest Arizona and Illinois Assets, Reduces Financing

Medmen Enterprises (CSE: MMEN) this morning announced progress in its recent decision to sell certain...

Friday, December 27, 2019, 08:58:47 AM

Medmen: Cantor Reiterates Ratings After Call With Management

On September 23, Medmen Enterprises (CSE: MMEN) reported their fiscal fourth quarter financial results. The...

Friday, October 8, 2021, 03:42:00 PM

MedMen Posts Flat Revenues, Loss of $40.6 Million For Second Quarter

Medmen Enterprises (CSE: MMEN) filed their second quarter 2020 financials this evening after the bell,...

Wednesday, February 26, 2020, 06:35:36 PM

Medmen: Canaccord Raises Price Target, Rating After Q4 Performance

On September 23, Medmen Enterprises (CSE: MMEN) reported their fiscal fourth-quarter financial results. The company...

Saturday, September 25, 2021, 01:05:00 PM