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 non-core assets of its US holdings. In accordance with that plan, the firm has entered a non-binding term sheet to sell its three Arizona vertical licenses, as well as a binding term sheet to sell a cultivation and manufacturing license in Illinois.

Cumulatively Medmen expects to generate approximately US$54 million from the sale of these assets which have been labelled as being “non-core.” However, specific terms of the transactions, including individual values or estimated closing dates were not provided. Only the combined sales figure was included in this mornings news release.

Definitive documentation has yet to be signed for the asset sales.

Separately, Medmen has also reduced its previously announced US$27 million financing with Wicklow Capital as a result of acquiring the term sheets for non-core assets. In a move that is rare for the company, Medmen has allegedly reduced the capital figure to US$20 million to “limit dilution to shareholders.” The price per share for the equity financing remains at US$0.43, resulting in 46,962,648 additional Class B common shares hitting the market. The financing will see funds put towards general corporate purposes as well as retail expansion plans.

The equity placement is expected to close in “one or more tranches” in the “coming days.”

Should all sales and financings go through, Medmen Enterprises will see a cash infusion of US$74 million on a gross basis.

Medmen Enterprises last traded at C$0.69 on the CSE.


Information for this briefing was found via Sedar and MedMen Enterprises. The author has no 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.

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