MedMen Enterprises Archives - Green Market Report

StaffFebruary 21, 2023

The Daily Hit is a recap of the top financial news stories for February 21, 2023.

On the Site

OCM Claims Variscite Application Score Too Low for a License

New York’s Office of Cannabis Management took another swing at the case filed by Variscite NY, which has stalled the adult-use licensing program in three state regions. The agency filed a motion last week with the Appeals Court for the Second Circuit asking it to block the current case, arguing that Variscite’s New York license application would likely not be approved based on its low score. Read more here.

MedMen Looks to Sell Assets in Arizona, Illinois & Nevada

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) hired ATB Capital Markets Inc. to help the company review and sell one or more of its noncore assets in Arizona, Illinois, and Nevada. ATB will help MedMen determine which assets to sell to boost liquidity and maximize shareholder value with an asset-light model. Read more here.

MariMed, Schwazze Active in Acquisitions

MariMed, Inc. (CSE: MRMD) (OTCQX: MRMD) announced it is buying the operating assets of troubled medical dispensary Ermont, Inc. located in Quincy, Massachusetts. Meanwhile, Schwazze (NEO: SHWZ) (OTCQX: SHWZ) announced it was buying Cannabis Care Wellness Centers, LLC and Green Medicals Wellness Center #5, LLC also known as Smokey’s. Read more here.

Unrivaled Brands Finds Growth Under Leadership of Cookies CFO

Unrivaled Brands Inc. (OTCQB: UNRV) saw 10% growth in sales through 2022 under a new batch of executives trying to turn the once-scaling company around. Sales growth appears to be one of the fewer upbeat aspects of the company’s journey lately, after a turbulent year of lawsuits, C-suite shuffles, and shareholder angst fueled by market woes. Read more here.

Canopy Growth Dilutes Shares Again in $150 Million Public Offering

Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) entered into an agreement with an institutional investor for a convertible debt issuance worth $150 million, which provides access to needed capital but further dilutes shares for existing shareholders. Read more here.

In Other News

The Cannabis Place

The Cannabis Place, a firm licensed to open a recreational marijuana dispensary in Queens, New York, plans to make delivering to Nassau County a major part of its business model. After winning a license last month, Suffolk County resident Osbert Orduña and his partners found a “phenomenal” location in the western part of the borough that’s a block away from the subway and has a garage bay for delivery drivers, according to Orduña. Read more here.

Canonic

Israeli cannabis developer Canonic on Tuesday launched a series of hybrid cannabis products produced with the aid of artificial intelligence. The strains were bred selectively to contain higher levels of THC and particular terpene characteristics with the assistance of the tech engine “GeneRator AI” developed by Evogene, of which Canonic is a subsidiary. Read more here.

StaffFebruary 2, 2023

The Daily Hit is a recap of the top financial news stories for February 2, 2023.

On the Site

MedMen on the Brink of Collapse

MedMen (OTC: MMNFF) is at the edge of capitulation after new financial statements on Thursday show the once-mighty MSO may not be able crawl out of the hole of debt it dug for itself. The company reported that it is more $137 million in debt, with $15 million cash and equivalents on the books. Read more here.

Curaleaf Employees Asks for Class Action Status Over Stolen Tips

Four dispensary employees asked an Illinois judge to certify a class in their suit against Curaleaf Holdings (CSE: CURA) (OTCQX: CURLF) alleging that MSO store managers pocketed more than $125,000 in stolen tip jar money meant for workers. Read more here.

Irwin Naturals Raises $40 Million for Clinic Expansion

Irwin Naturals Inc. (CSE: IWIN) (OTC: IWINF) reported that it had secured a credit facility as of February 1, 2023, with its existing commercial lender for up to $60 million with $40 million of it currently committed. Irwin Naturals said this money will help it to accelerate its roll-up and be a significant player in the world of psychedelic mental health clinics. Read more here.

Missouri’s Recreational Market Begins to Take Shape

Adult-use cannabis sales will be allowed to start on Monday in Missouri, led by medical marijuana operators that receive approval from the state by then. Lisa Cox, the state health department’s communication director, told Green Market Report that the “vast majority” of licensed medical cannabis facilities applied to participate in the adult-use program, but the approval process is just getting under way. Read more here.

In Other News

Celadon Pharmaceuticals

Celadon Pharmaceuticals Plc, a U.K. pharmaceutical company, gained MHRA registration for Good Manufacturing Practice manufacture of their high-THC cannabis active pharmaceutical ingredient. It is a worldwide industry leader with multibillion dollar acquisition potential. According to a spokesperson of the company, this is the first registration of a U.K. pharmaceutical facility for high delta-9-tetrahydrocannabinol cannabis API since the legalization of medical cannabis in the year 2018 in the U.K. Read more here.

Oregon Liquor and Cannabis Commission

Steve Marks, the longtime director of the Oregon Liquor and Cannabis Commission, told staff Wednesday that he will be resigning at the request of Gov. Tina Kotek. The resignation, first reported by Willamette Week, is not yet final, according to OLCC spokesperson Mark Pettinger. He said Marks had acknowledged the rumors swirling around the agency at a management meeting Wednesday, telling staff that details remained to be worked out. Read more here.

Debra BorchardtDecember 27, 2022

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From debt defaults to ousted leaders, the cannabis industry had its fair share of scandals in 2022.

StaffOctober 21, 2022

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MedMen filed suit Wednesday to prevent a refiling.

Debra BorchardtSeptember 17, 2020

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) waiting until the market closed on Wednesday before telling shareholders it picked up another $20 million from lenders and institutional investors. The deal for MedMen includes 10 million in gross proceeds under a new unsecured convertible facility, plus $5.7 million under its senior secured term loan led by Stable Road Capital and $5 million under its senior secured convertible facility led by Gotham Green Partners.

Just what will this cost? It’s not too far from getting an extremely big credit card. The principal amount of the Incremental Notes will carry an interest rate of 18.0% per annum, to be paid as follows: (a) 12.0% shall be paid in cash monthly in arrears; and (b) 6.0% shall accrue monthly to the outstanding principal as payment-in-kind.

“We are pleased with the continued support from our existing capital partners as we continue our recent track record of execution,” said MedMen Executive Chairman, Ben Rose. “The financing package is a significant milestone for the company and is a reflection of the commitment the Company has made to strengthen the balance sheet, accelerate its path to profitability and sustainability, and focus on its core retail business. We look forward to continuing to expand the MedMen brand.”

On September 16, 2020, MedMen closed on an initial $1 million, and has the right to call additional tranches, totaling a million each, no later than 20 trading days from receiving each tranche. Participating lenders will receive a $468,564 fee with a conversion price of $0.20 per share, consistent with the terms of the Facility. MedMen shares were recently selling at $0.17 per share on the OTC marketplace. MedMen has said it will announce its earnings on September 28 after the market closes.

Company Update

While MedMen has struggled over its leadership problems and mountain of debt, it continues to press forward. The company recently noted that it is has 25 retail stores that are in operation across California, Nevada, Illinois, Florida, New York, and Arizona. On August 3, 2020, the City Council of West Hollywood adopted an urgency ordinance to create a new “Legacy Cannabis Business License” which will permanently allow for both medical and adult-use sales of cannabis by MedMen West Hollywood and the three other pre-existing medical operators, bringing the collaborative efforts between the City of West Hollywood and other related parties to a final resolution.

On August 6, 2020, the Massachusetts Cannabis Control Commission voted in favor of granting MedMen Boston, LLC, a subsidiary of the Company, a provisional adult-used license for its proposed flagship retail location near Fenway Park. A final license for this location is subject to meeting various conditions prior to opening, which is expected to occur in 2021.

“The positive licensing developments in West Hollywood and Boston are a result of the Company’s commitment to meaningful engagement with local regulators and the communities we are privileged to serve,” said MedMen Executive Chairman Ben Rose. “We continue forward momentum as we execute on our turnaround plan, strengthen our retail footprint and improve four-wall economics. Through our focus on retail, we have made significant progress in optimizing our business model and improving our presence as partners and neighbors in our locations as we expand the MedMen brand in existing and new markets across the U.S.”

William SumnerDecember 12, 2019

It’s time for your Daily Hit of cannabis financial news for December 12, 2019.

On the Site

Cresco Labs Shores Up Its Balance Sheet, Sells Property for $50 Million

The Illinois-based Cresco Labs (CSE: CL) (OTCQX: CRLBF) is looking to shore up its balance sheet by selling off one of its properties. Today the company announced that it would sell its Lincoln, Illinois cultivation facility to GreenAcreage Real Estate Corp. (GreenAcreage), for $50 million. Though Cresco is technically selling the property, which is still under construction, the company has entered into a triple-net lease agreement with GreenAcreage and will continue operating on the property as a licensed medical & recreational cannabis cultivation and processing facility.

Industry Power Women Awards Three During MJBiz Conference

The women’s cannabis networking organization known as Industry Power Women joined forces with Accelerate Cannabis during the 2019 MJ Biz Conference to recognize three individuals and their efforts within the cannabis industry. During the Mid-Atlantic Mixer, Saphira Galoob, Erica Daniels and Kristin Jordan each received engraved crystal awards in recognition of their work.

In Other News

MedMen Enterprises

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced the execution of several financing agreements. First, the company executed a term sheet for a non-brokered offering of subordinate voting shares worth $27 million, which is expected to close on or around December 18, 2019. MedMen also announced an amendment to the terms of a senior secured convertible credit facility arranged by Gotham Green Partners, securing an additional $10 million in funding. In addition to the two financing agreements, the company executed a binding term sheet in respect of certain amendments to the definitive agreements for the $78 million senior secured term loan, which is expected to mature on January 31, 2022.

Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced the launch of a hemp-based line of CBD products. Dubbed “First & Free,” the new line of products will include a variety of formats such as soft gels, oil drops, and creams. The products will be made available through the company’s new e-commerce site www.firstandfree.com.

Columbia Care

Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) (FSE: 3LP) today signed a definitive agreement for its first sale-leaseback with NewLake Capital, valued at $35 million. The agreement involves six properties across three states (California, Illinois, and Massachusetts), and totals approximately 127,000 square feet of space. The transaction includes a dispensary in San Diego, California; a dispensary in Chicago, Illinois; dispensaries in Greenfield and Lowell, Massachusetts; and two cultivation and manufacturing facilities in Lowell, Massachusetts and Aurora, Illinois. “As our markets come on-line and mature, we intend to demonstrate the power and scale of our economic model by generating positive cashflow at the individual product, facility and market levels, as well as on a consolidated basis,” said Nicholas Vita, Chief Executive Officer of Columbia Care.

William SumnerMay 29, 2019

It’s time for your Daily Hit of cannabis financial news for May 29, 2019.

On the Site

Acreage Holdings

Acreage Holdings, Inc. (ACRG-U.CN) (ACRGF) reported financial results for the quarter ending March 31^st, 2019 with revenue rising 487% to $12.9 million, but the company also delivered a whopping net loss of $31.2 million. Looking at pro forma results, the revenue would have been $33.1 million and the adjusted net loss would have been $15.5 million.

Special Report: Current Issues in Marijuana Regulation – Veterans Struggle to Gain Access to Medical Marijuana

Thirty-three states and the District of Columbia have enacted medical marijuana programs. Despite this expansion military veterans often face greater obstacles to gaining access to medical marijuana than other groups.

Another Delay for New Jersey Cannabis Legalization

An ongoing political saga took another unpredicted turn this month. After over a year of building momentum, hopes for a legislative vote on legalizing the adult-use of recreational cannabis have once again faded.

In Other News

Charlotte’s Web Holdings

Charlotte’s Web Holdings, Inc. (CSE: CWEB) (OTCQX: CWBHF) announced that it has received conditional approval to list its common shares on the Toronto Stock Exchange (TSX). The company anticipates that it will begin trading as of market open on May 31, 2019. As part of its listing on the TSX, the company will delist its stock on the Canadian Securities Exchange at the close of the market on May 30, 2019. “As the market leader in hemp CBD extract products, we are very proud to be the first US-based hemp company to receive a senior listing on a major exchange such as the TSX,” said Joel Stanley, Chairman and Co-Founder of Charlotte’s Web. “The TSX is Canada’s most senior exchange and a tremendous validator of our company’s corporate governance and evolution.”

Origin House

Origin House (CSE: OH) (OTCQX: ORHOF) released today their financial results for the first quarter of 2019. Revenue for the quarter was $11.2 million, the gross margin was $1.7 million, and adjusted EBITDA was $12.7 million. As of March 31, 2019, the company had $39.3 million in cash and approximately $269.4 million in assets. On Jun 11, 2019, Origin House will hold a special shareholders meeting regarding Cresco Labs Inc.’s previously announced acquisition of all of the company’s issued and outstanding shares.

TREC Brands

TREC Brands Inc. announced the launch of two brands, WINK and Blissed, and a $10 million private placement. Blissed is a female-focused cannabis oil brand and WINK is TREC’s second luxury cannabis brand. “We are proud of the premium nature of our organization and our actions to create an industry-wide movement around community support,” says Trang Trinh, CEO, TREC Brands. “With Blissed, the goal is to uplift the modern woman through education and content that complements her lifestyle, while giving back to causes in her neighborhood that matter.”

MedMen Enterprises

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) today released their financial results for the third quarter for the 2019 fiscal year. Revenue rose by 22% to $36.6 million. The gross profit margin after biological asset adjustment was 53.7%. For the quarter, the company reported an adjusted EBITDA loss of $42.6 million and a net loss of $63.1 million. “Over the past nine years, MedMen has built the most valuable retail brand in the cannabis industry by taking advantage of the land grab opportunity and scaling with speed to secure as many flagship assets as possible,” said Adam Bierman, MedMen co-founder and chief executive officer. “We continue to march onward towards profitability.”

William SumnerMay 23, 2019

It’s time for your Daily Hit of cannabis financial news for May 23, 2019.

On the Site

Why Canopy Growth’s Deals May Not Translate Into Gains for CGC Stock

Canopy Growth (NYSE: CGC) moved higher after announcing a deal with its investment arm, Canopy Rivers (OTCMKTS: CNPOF). This offers some relief to CGC stock, which had returned to levels not seen since before they announced their buyout intentions on Acreage Holdings (OTCMKTS: ACRGF). Unfortunately, Canopy Growth stock seems to need more.

In Other News

TerrAscend

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported its financial results for the first quarter of 2019. Revenue was $14.6 milion, up from $5 million in the previous quarter. Adjusted EBITDA was $7.2 million, up from a loss of $7.1 million in the last quarter. “Our sales in Canada continue to be strong, driven by demand from provincial distributors and consumers,” said Michael Nashat, TerrAscend’s CEO. “We are building industry-leading cultivation and processing capabilities. Our Mississauga facility was recently GMP certified by the German authorities – the only such certification granted in the last year – and exports to the EU will commence this quarter.”

MedMen Enterprises

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N) announced that it has been advanced an additional $80 million in accordance with a $250 million secured convertible credit facility with Gotham Green Partners. The company has issued additional convertible senior secured notes to the lenders with a conversion per subordinate voting share of the company equal to $3.29 per share.

Tilray

Tilray, Inc. (NASDAQ: TLRY) announced that its wholly owned subsidiary Tilray Portugal Unipessoal Lda. (Tilray Portugal) has received manufacturing licensed and a Good Manufacturing Practices certification for its Biocant Park manufacturing facility in Cantanhede, Portugal. “This licensing and certification marks a critical milestone for our growth in Portugal and Europe,” said Sascha Mielcarek, Tilray Managing Director, Europe. “The next phase of GMP certification will allow us to utilize the full capacity of our multi-faceted facility and continue to serve more patients in-need.”

Green Thumb Industries

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) announced that it has closed a $105 million senior secured non-brokered private placement financing through the issuance of senior secured notes. The notes will mature on May 22, 2022 and will bear a annual interest rate of 12%, with an option for GTI to extend the date by an additional 12 months. “Strategic capital allocation is fundamental to the business and this financing strengthens our balance sheet at an attractive cost of capital for our business and shareholders,” said GTI Founder and CEO Ben Kovler. “We are well-positioned to capitalize on the attractive market opportunities in front of us. The proceeds will fuel our aggressive growth plans for faster route-to-market in key markets like New Jersey, as well as pursue expansion opportunities that broaden the reach of our brand portfolio.”

William SumnerApril 23, 2019

It’s time for your Daily Hit of cannabis financial news for April 23, 2019.

On The Site

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV) (OTCQX: HRVSF) reported the company’s fourth quarter and fiscal year 2018 financial results. For the quarter HHR delivered total revenue of $16.9 million, an increase of 135% versus last year’s $7.2 million in the same time period. This was a sequential increase of 52%.

Cannabis Rock Star Lineup For The Green Market Summit In Chicago

As the U.S. market continues to develop, the Green Market Report invites you to discuss the advanced economic state of cannabis at the Green Market Summit in Chicago, Illinois on May 7, 2019. This special one-day symposium will discuss the continued development of the U.S. cannabis market, as well as the effect that the 2018 Farm Bill’s passage has had on the industry.

Mattio Communications

One of the fastest growing cannabis-focused public relations firm MATTIO Communications announced that it received a seed round of funding. The investors for the company included Phyto Partners, venture capital titan Alan Patricof, founder of Greycroft, and Green Seed Fund.

In Other News

IONIC Brands

IONIC Brands Corp., formerly known Zara Resources Inc. (CSE: IONC; FRA: 1B3), announced that has acquired Zoots Premium Cannabis Infused Edibles for $855,000 and an issuance of 10.7 million common shares of the company. Additionally, ICONIC will issue 5.35 million common share purchase warrants to the shareholders of Zoots, with an exercise price of C$1.33 per share, exercisable over three years.

DELTA 9

DELTA 9 CANNABIS INC. (TSXV: NINE) (OTCQX: VRNDF) today released its year-end financial results for ending December 31, 2018. Revenue for the company rose by 702% from $944,114 in the previous year to $7.2 million. Gross profits were $5.74 million, up from $442,681 in the previous year. The company reported a net income loss of $8.61 million. For the fourth quarter, revenue was $5.27 million and a gross profit of $3.34 million. Quarterly losses were $2.17 million.

MedMen Enterprises

MedMen Enterprises Inc. (CSE:MMEN) (OTCQX:MMNFF) announced that it has entered into a definitive agreement for the previously announced $250 million secured convertible credit facility with Gotham Green Partners. MedMen received the first tranche of $20 million. The company said it will use the proceeds to consolidate its supply chain, invest in technology and digital infrastructure, accelerate expansion through acquisitions and investments in core markets, integrate acquired assets, and operationalize existing retail licenses.

William SumnerApril 9, 2019

It’s time for your Daily Hit of cannabis financial news for April 9, 2019.

On The Site

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV, OTCQX: HRVSF) is acquiring CannaPharmacy, Inc. in a deal with undisclosed value. CannaPharmacy owns or operates cannabis licenses in Pennsylvania, Delaware, New Jersey, and Maryland. Harvest recently announced the private placement of $500 million in convertible debentures to continue to finance acquisitions and corporate growth. Harvest said that it expects that the transaction will be accretive to Harvest’s 2020 revenue and EBITDA.

New York State Stalls Major Cannabis Mergers

New York State’s Department of Health that oversees the medical marijuana program has yet to approve three outstanding proposed acquisitions. The three deals include the MedMen Enterprises Inc. (MMNFF) acquisition of Pharmacann, The Green Thumbs Industries (GTI) acquisition of Fiorello Pharmaceuticals and the Cresco Labs Inc. (CRLBF) deal with Valley Agriceuticals.

In Other News

Pivot Pharmaceuticals Inc.

Pivot Pharmaceuticals Inc. (CSE: PVOT) announced that on April 8, 2019, it entered into a binding letter of intent with High Park Ventures Inc. (HPK) for a private placement of $15 million. The private placement is expected to close in two tranches and is contingent upon HPK satisfactorily completing its due diligence investigation. “With the investment and support provided by the High Park Ventures Team, we are able to implement and accelerate our initiatives,” stated Pivot CEO Dr. Patrick Frankham. “The experience and track record of the High Park Ventures Team will greatly benefit Pivot’s management team as we commercialize our industry leading bio-cannabis product line.”

Green Thumb Industries

Green Thumb Industries (CSE: GTII) today reported its financial results for the forth quarter and full year ending on December 31, 2018. For the fourth quarter, GTI increased its revenue by 237% to $20.8 million. For the year, GTI made $62.5 million. EBITDA for the quarter was a loss of $4.8 million and for adjusted EBITDA was a loss of $12.4 million. However, for the year, EBITDA and Adjusted EBITDA was $27.7 million and $21.5 million, respectively. The company experienced a net loss of $3.1 million for the quarter and $7.7 million for the whole year. “Discipline continues to drive how we allocate capital to create long-term shareholder value,” commented GTI Founder and CEO Ben Kovler. “We continue to execute against our strategic priorities for 2019: 1) establish a leading brand portfolio through innovation, standardization, and distribution; 2) accelerate retail growth through new store openings and consumer loyalty, and 3) bolster infrastructure with people, process, and technology to deliver sustainable profitable growth.”

Cansortium Inc.

Cansortium Inc. (CSE: TIUM) today announced a $25 million private placement with Canaccord Genuity Corp. and Paradigm Capital Inc. The company will issue convertible debenture units at an issue price of $1,000 per unit. Each unit will consist of a senior secured convertible debenture of the company valued at $1,000 and accruing interest at 12.0% annually, and 229 common share purchase warrants. The offering is expected to close on or around April 23, 2019.

Older Posts

On the Site

In Other News

On the Site

In Other News

Company Update

On the Site

Cresco Labs Shores Up Its Balance Sheet, Sells Property for $50 Million

Industry Power Women Awards Three During MJBiz Conference

In Other News

MedMen Enterprises

Canopy Growth

Columbia Care

On the Site

Acreage Holdings

Special Report: Current Issues in Marijuana Regulation – Veterans Struggle to Gain Access to Medical Marijuana

Another Delay for New Jersey Cannabis Legalization

In Other News

Charlotte’s Web Holdings

Origin House

TREC Brands

MedMen Enterprises

On the Site

Why Canopy Growth’s Deals May Not Translate Into Gains for CGC Stock

In Other News

TerrAscend

MedMen Enterprises

Green Thumb Industries

On The Site

Harvest Health & Recreation

Cannabis Rock Star Lineup For The Green Market Summit In Chicago

Mattio Communications

In Other News

IONIC Brands

DELTA 9

MedMen Enterprises

On The Site

Harvest Health & Recreation

New York State Stalls Major Cannabis Mergers

In Other News

Pivot Pharmaceuticals Inc.

Green Thumb Industries

Cansortium Inc.

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