MedMen, which has a marijuana dispensaries that provide a wide range of best and high quality cannabis products, has announced that it has received an $80 million trench of funding from New York private equity group Gotham Green Partners (GGP).
The money is the first part of a $250 million convertible credit facility with GGP that MedMen had secured back in March.
According to the company’s press release, MedMen “has issued to the lenders additional convertible senior secured notes (“Notes”), co-issued by the Company and MM CAN USA, Inc., a subsidiary of the Company (“MM CAN”), with a conversion price per Subordinate Voting Share of the Company equal to US$3.29 per share.
It continues, “The lenders have also been issued 10,399,851 share purchase warrants of the Company (“Warrants”), each of which is exercisable to purchase one Subordinate Voting Share of the Company for a period of 36 months from the date of issue. The number of Warrants issued represents an approximate 50% Warrant coverage. The exercise price of 75% of such Warrants is US$3.718 per share, with the remaining 25% of such Warrants having an exercise price per share equal to US$4.29. As additional consideration for the purchase of the Notes, at the time the lenders were paid an advance fee of 1.5% of the principal amount of the Notes purchased.”
MedMen is expected to release its quarterly results May 29.