MedMen To Appoint New Independent Board At Gotham Green’s Discretion

Following Medmen Enterprises’ (CSE: MMEN) horrendous financials filed yesterday for fiscal 2019, the firm announced that it has amended the terms of its financing with Gotham Green Partners. The new terms will see Medmen able to access funding earlier, albeit at a decreased amount. The major catch however, is that the firm will be required to shake up its Board of Directors.

The new terms of the facility being offered by Gotham Green amounts to the same cumulative figure of US$250 million in financing. However, terms have changed so that tranche 3 consists of only US$10 million in financing, whereas it previously amounted to $75 million. The tranche will also be made available within the next 30 days, whereas it was originally scheduled for December release. The fourth tranche will now consist of a total US$115 million. However, the issuance of the fourth tranche must be agreed to by both Medmen as well as Gotham Green Partners.

Other modifications to the terms of the secured convertible debentures include:

  • a reduction in required minimum cash balances,
  • removal of restrictions on equity issuances, and
  • an additional ability to spin-out or borrow against certain non-core assets, in addition to sales and indebtedness that were permitted prior to the amendment.

As a condition for the amended facilities, it appears that Medmen’s management team and founders may lose a bit of control. Gotham Green has required that the Board of Directors of the firm be shaken up with new independent directors, that are to form a majority on the board. Medmen will propose candidates for directorship, with Gotham Green giving the final approval, in a sign of CEO and co-founder Adam Bierman’s, as well as President and co-founder Andrew Modlin’s, loosening grip on control of the firm.

Medmen Enterprises closed yesterdays session at $1.80 on the CSE.


Information for this briefing was found via Sedar and MedMen. 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.

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