After netting $30 million through a retail sale deal to a real estate investment trust last week, U.S. cannabis company MedMen Enterprises Inc. (CSE:MMEN; OTCQX:MMNFF; FSE: A2JM6N) is about to receive an even larger influx of capital.
Today, California equity firm Gotham Green Partners announced an immediate $100 million investment into MedMen, with options available in two later tranches to bump that amount up to a total of $250 million.
If MedMen meets company milestones set by Gotham Green Partners, including unspecified stock price tiers, an additional $75 million will be invested in 6 months, with the final $75 million tranche to be distributed in a year’s time.
Chief Executive Officer Adam Bierman stated the funds would be used for rolling out new products and getting the company’s 30 licensed retail stores in Florida up and running to begin selling to consumers.
Additionally, the investment will spur on the expansion of production facilities, as well as acquiring new assets to integrate and consolidate all aspects of the cannabis supply from growth to sale.
Bierman further commented on the investment announcement:
MedMen has been involved in a cannabis media blitz in recent weeks as a variety of legalization bills make their way through various state legislatures and nationwide federal legalization becomes a hot button issue for the upcoming 2020 Presidential election.
After releasing a Spike Jonze-directed ad about cannabis counterculture becoming the new normal in the US and Canada, MedMen’s CEO also appeared at both the South By Southwest (SXSW) festival as well as the annual ROTH business conference earlier this month.
A laundry list of North American cannabis companies made panel and workshop appearances at those two major events, marking a noted shift towards cannabis business acceptance nationwide.
One of the most high-profile cannabis appearances at this year’s SXSW came from U.S. company Acreage Holdings, Inc. (CSE: ACRG.U; OTCQX: ACRGF; FSE: 0VZ), with board member and former Republican Speaker of the House John Boehner speaking in support of legalization.
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