Medmen Enterprises Inc. (OTCMKTS: MMNF) has announced that various investors, spearheaded by Serruya Private Equity, will purchase around $100 million worth of its units at $0.24 per unit.
The company will use the $100 million raised from the Private Placement to expand operations in major markets such as Florida, Illinois, California, and Massachusetts and expedite growth opportunities in the US.
MedMen CEO Tom Lynch said, “This US$100 million investment is a game-changer for our Company, strengthening our balance sheet and creating a platform for our future growth. This transaction gives us the flexibility and firepower to match our revenue trajectory to our operational expertise and internationally renowned brand. MedMen 2.0 is here, and we are thrilled to embark on the next stage of our journey.”
Among the investors that bought a stake in the amended convertible Note is Tilray Inc. (NASDAQ: TLRY). Tilray purchases the note originally held by Funds, including Gotham Green Partners LLC. After the legalization of cannabis in the US, Tilray will convert the Notes and exercise the related warrants to gain a significant ownership stake in MedMen.
Tilray CEO Irwin Simon said, “Backed by accelerating trends towards legalization globally, we are focused on building the world’s leading cannabis-focused consumer-branded company with a goal of $4 billion of revenue by the end of our fiscal 2024. The investment we are announcing in MedMen securities today, one of the most recognized brands in the $80 billion U.S. cannabis market, is a critical step towards delivering on our objective as we work to enable Tilray to lead the U.S. market when legalization allows.”
