Cannabis company MedMen Enterprises closes additional tranche on term loan facility

The cannabis company MedMen Enterprises Inc (CSE:MMEN; OTCQB:MMNFF) announced Thursday that it closed an additional tranche of its senior secured term loan facility, which is being managed by Hankey Capital and an affiliate of Stable Road Capital.

Proceeds from the loan will be used by MedMen for acquisitions, capital expenditures and other corporate expenses.

The principal amount of the loan has been lifted by C$5.66 million to C$99.95 million. Interest on the principal will be paid at a rate of 7.5% per year, paid monthly, with a maturity date of 24 months following the date of closing.

Read: MedMen branches out into the Chicago market through its latest dispensary acquisition

In connection with the increased principal for the loan, MedMen has issued an additional 511,628 warrants to the lenders, each of which can be exercised for one class B share at a purchase price per share of C$6.09 (US$4.73) for a period of thirty months.

As well as funding a portion of the lending arrangement, Stable Road Capital is also providing advisory services to MedMen. Its outreach efforts include introducing MedMen to other companies and offering advice on its loan and MedMen’s planned structured sale of real estate assets.

For its advisory services, MedMen has granted Stable Road Capital 8.1 million 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 the company for a period of 30 months.

Based in Los Angeles, MedMen has cannabis operations across the US. On its list of recent moves are new expansion efforts in the Chicago market with the acquisition of Seven Point dispensary and also the takeover of Monarch, an Arizona-based medical marijuana dispensary that also operates a 20,000 square foot cultivation and manufacturing facility.

MedMen closed up 4.8% on Wednesday to $4.15.

Story by ProactiveInvestors