MedMen Provides Additional Detail on the Agreement to Acquire PharmaCann
MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQB: MMNFF) (FSE: A2JM6N) and Chicago-based PharmaCann LLC
(“PharmaCann”) have provided additional detail related to the binding letter of intent (the “Agreement”) for MedMen to acquire all
of PharmaCann’s outstanding equity interests. Under the terms of the Agreement, PharmaCann units will be exchanged for equity
interests which will include the right to receive the Company’s Class B Subordinate Voting Shares (“Shares”), and which on a
pro-forma basis will equal 25% of the then fully-diluted outstanding shares of the Company (calculated based on the treasury stock
method) upon the closing of the transaction (the “Closing”). The total transaction was valued at $682 million (USD) based on the
closing price of the Company’s Class B Subordinate Voting Shares on October 9, 2018 (such value being subject to change based on
the daily closing price of the Company). No change of control to the Company will result upon the Closing. The Shares are expected
to be subject to lock up agreements for a period of between 6-12 months.
The transaction is subject to regulatory approvals by various local and state authorities in each of the U.S. states where
PharmaCann’s assets and licenses are held (the “Approvals”). The Closing is expected to take 6-12 months based on the receipt of
the Approvals. In the event that certain Approvals are not obtained by the Closing, a portion of the Share consideration, as
determined by the parties (but in no event more than 30% of the consideration), will be held in escrow until the Approvals are
received, and such escrowed Shares shall be released to PharmaCann unitholders upon the receipt of such Approvals. In the event
that an Approval is not able to be obtained within 24 months following the execution of definitive documentation, the parties shall
will use commercially reasonable efforts to transition such license to a third party with any such proceeds going to the Company
and any related escrowed shares released to PharmaCann unitholders.
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 PHARMACANN:
PharmaCann LLC , one of the nation’s largest medical cannabis providers, cultivates, processes and dispenses safe, independently
tested cannabis products to improve people’s lives. PharmaCann’s dispensaries, called Verilife, and production facilities, called
Veriplant, are operating in multiple states including Illinois, Maryland, Massachusetts and New York, with other locations in
development including Michigan, Ohio, Pennsylvania and Virginia. By elevating cannabinoid-based products, PharmaCann empowers
people with more options for feeling and living better. For more information, visit
www.pharmacann.com.
Source: MedMen Enterprises
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable
securities laws (collectively, “forward-looking information”) with respect to the Company, including, but not limited to:
information concerning the completion and timing of the completion of the contemplated acquisition of PharmaCann LLC, expectations
regarding whether the contemplated acquisition will be consummated, including whether conditions to the consummation of the
proposed acquisition will be satisfied and whether the proposed acquisition will be completed on the current terms, the timing for
completing the proposed acquisition, expectations for the effects of the proposed acquisition, including the potential number and
location of facilities and stores or licenses therefor to be acquired, acceleration of the launch of the [statemade] brand,
acceleration of M&A and license applications and increases in store traffic and basket sizes, expectations regarding the
markets to be entered into by the Company as a result of completing such proposed acquisition, the ability of the Company to
successfully achieve its business objectives as a result of completing the contemplated acquisition, estimates of future
cultivation, manufacturing and extraction capacity, estimates of future revenue or revenue growth (and the method by which such
future revenue is generated), store related forecasts, including as to number of planned stores to be opened in the future,
information as to the development and distribution of the Company’s brands and products, and any other statement that may predict,
forecast, indicate or imply future plans, intentions, levels of activity, results, financial position, operational or financial
performance or achievements. Such forward-looking information involves known and unknown risks, uncertainties and other factors
which may cause the actual plans, intentions, activities, results, financial position, performance or achievements of the Company
to be materially different from any future plans, intentions, activities, results, financial position, performance or achievements
expressed or implied by such forward-looking information. Often, but not always, forward-looking information can be identified by
the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates”, will”, “projects”, or “believes” or variations (including negative variations) of such words and phrases, or
statements that certain actions, events, results or conditions “may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved. Except for statements of historical fact, information contained herein constitutes forward-looking information.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of
management at the date the statements are made including among other things assumptions about: the contemplated acquisition being
completed on the current terms and current contemplated timeline; development costs remaining consistent with budgets; favorable
equity and debt capital markets; the ability to raise sufficient capital to advance the business of the Company; favorable
operating conditions; political and regulatory stability; obtaining and maintaining all required licenses and permits; receipt of
governmental approvals and permits; sustained labor stability; stability in financial and capital goods markets; favourable
production levels and costs from the Company’s operations; the pricing of various cannabis products; the level of demand for
cannabis products; and the availability of third party service providers and other inputs for the Company’s operations. While the
Company considers these assumptions to be reasonable, the assumptions are inherently subject to significant business, social,
economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause
actual performance, achievements, actions, events, results or conditions to be materially different from those projected in the
forward-looking information. Many assumptions are based on factors and events that are not within the control of the Company and
there is no assurance they will prove to be correct.
Furthermore, such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause
the actual plans, intentions, activities, results, financial position, performance or achievements of the Company to be materially
different from any future plans, intentions, activities, results, financial position, performance or achievements expressed or
implied by such forward-looking information. Such factors include, among others: the ability to consummate the proposed
acquisition; the ability to obtain requisite regulatory approvals and third party consents and the satisfaction of other conditions
to the consummation of the proposed acquisition on the proposed terms and schedule; the potential impact of the announcement or
consummation of the proposed acquisition on relationships, including with regulatory bodies, employees, suppliers, customers and
competitors; the diversion of management time on the proposed acquisition; risks relating to cannabis being illegal under US
federal law and risks of federal enforcement actions related to cannabis; negative changes in the political environment or in the
regulation of cannabis and the Company’s business; risks relating to lack of banking providers and characterization of the
Company’s revenue as proceeds of crime as a result of anti-money laundering laws and regulation; the costs of compliance with and
the risk of liability being imposed under the laws the Company operates under including environmental regulations; negative shifts
in public opinion and perception of the cannabis industry and cannabis consumption; risks that service providers may suspend or
withdraw services; the limited operating history of the Company; reliance on the expertise and judgement of senior management of
the Company; increasing competition in the industry; risks related to financing activities, including leverage; risks related to
the management of growth; increased costs related to the Company becoming a publicly traded company; risks inherent in an
agricultural business; adverse agricultural conditions impacting cannabis yields; risks relating to rising energy costs; risks of
product liability and other safety related liability as a result of usage of the Company's cannabis products; negative future
research regarding safety and efficacy of cannabis and cannabis derived products; risk of shortages of or price increases in key
inputs, suppliers and skilled labor; a lack of reliable data on the medical and adult-use cannabis industry; loss of intellectual
property rights or protections; cybersecurity risks; constraints on marketing products; fraudulent activity by employees,
contractors and consultants; tax and insurance related risks; risk of litigation; conflicts of interest; compliance with extensive
government regulation; changes in general economic, business and political conditions, including changes in the financial markets;
as well as those risk factors discussed in the Company’s Listing Statement filed on SEDAR at
www.sedar.com on May 29, 2018 and discussed in the Company’s other public filings available on SEDAR. Although the Company has
attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove
to be accurate as actual results and future events could differ materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward-looking information. Forward-looking information is provided and made as of the
date of this presentation and MedMen does not undertake any obligation to revise or update any forward-looking information other
than as required by applicable law.
MedMen Enterprises Inc.
OFFICER:
James Parker
CFO
James.Parker@medmen.com
(323) 705-3025
or
MEDIA CONTACT:
Allison Metcalf
Allison.Metcalf@edelman.com
(323) 761-6642
or
INVESTOR RELATIONS CONTACT:
Stéphanie Van Hassel
Head of Investor Relations
investors@medmen.com
(323) 705-3025
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