MedMen Increases Term Loan Facility to C$100 Million
MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQB: MMNFF) (FSE: A2JM6N) announced today that it has closed
an additional tranche of its previously announced senior secured term loan (the “Facility”) with funds managed by Hankey Capital
and an affiliate of Stable Road Capital (the “Lenders”). Pursuant to the terms of the Facility, the principal amount of the loan
has been increased by C$5,661,920 to C$99,952,190. The principal amount under the Facility will accrue interest at a rate of 7.5
percent per annum, paid monthly, with a maturity date of 24 months following the date of closing. The proceeds from the Facility
will be used for acquisitions, capital expenditures and other corporate expenses.
In connection with the increased principal under the Facility, an affiliate of MedMen has issued to the Lenders an additional
511,628 warrants, each being exercisable for one Class B Common Share of such company at a purchase price per share of C$6.09
(US$4.73) for a period of 30 months (“Lender Warrants”). Such Class B Common Shares are redeemable in accordance with their terms
for Class B Subordinate Voting Shares of the Company.
In addition to providing a portion of the Facility, Stable Road Capital is providing advisory services to MedMen. Advisory
services include introducing MedMen to brands and various service providers, advice on the Facility and providing advice with
respect to MedMen’s planned structured sale of real estate assets. For its advisory services, an affiliate of MedMen has issued to
Stable Road Capital 8,105,642 warrants at a purchase price per share of C$6.37 (US$4.97) and 511,628 warrants at a purchase price
per share of C$6.09 (US$4.73) each being exercisable for one Class B Common Share of such company for a period of 30 months.
ABOUT MEDMEN:
MedMen Enterprises is a leading cannabis company in the U.S. with assets and operations across the country. Based in Los
Angeles, MedMen brings expertise and capital to the cannabis industry and is one of the nation’s largest financial supporters of
progressive marijuana laws. Visit
http://www.medmen.com.
ABOUT HANKEY CAPITAL:
Hankey Capital is a single-family office based in Southern California. As a balance sheet lender, Hankey originates financing in
the $2 million to $100 million-dollar range primarily secured by commercial real estate as well as other forms of collateral. The
Firm specializes in niches overlooked by banks and other traditional capital sources. Through 3Q 2018, Hankey Capital has over $850
million in loans on its balance sheet. The Firm is part of privately-held Hankey Group of Companies lead by Don Hankey with assets
nearing $10 billion.
http://www.hankeycapital.com/
ABOUT STABLE ROAD CAPITAL:
Stable Road Capital is a family office employing an opportunistic approach to fundamental value investing. The Firm focuses
on acquiring and investing in high quality operating businesses, assets and funds. While the Firm is generally industry agnostic,
Stable Road Capital has dedicated considerable resources to advising and investing in the cannabis sector, focusing on large
vertically integrated players, individual brands, and industry specific private equity funds.
https://www.stableroadcapital.com/
SOURCE: MedMen Enterprises
MedMen Enterprises
MEDIA CONTACT:
Briana Chester
Senior Publicist
(424) 888-4260
Email: briana.chester@medmen.com
or
INVESTOR RELATIONS CONTACT:
Stéphanie Van Hassel
Head of Investor Relations
(323) 705-3025
Email: investors@medmen.com
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