Multistate marijuana company MedMen is switching up its enterprise partner in its effort to take the agency public in Canada.
The California-based agency signed a letter of intent with Vancouver, British Columbia-based Ladera Ventures that may permit a reverse takeover of the agency.
The deal charts a path for MedMen to go public in Canada with out launching an preliminary public providing of its shares – the normal route for many corporations.
It additionally means MedMen reduce off a reverse takeover deal it had brokered with Toronto-based OutdoorPartner Media in early April.
After the preliminary due diligence, MedMen found points that made OutdoorPartner Media “unqualified to be the target of the RTO (reverse takeover),” stated Daniel Yi, a spokesman for MedMen.
Under the phrases of the new settlement, Ladera will create a new class of voting shares that shall be issued to the founders of MedMen, Adam Bierman and Andrew Modlin.
Ladera Ventures is listed on the TSX Venture Exchange underneath the ticker LV.H. Trading of its shares has been halted whereas the MedMen deal runs its course.
According to Bloomberg, Ladera is actually a shell company with no main present operations however was beforehand concerned in oil and fuel properties in Alberta, Canada. The agency was previously referred to as T.M.T Resources however modified its identify to Ladera Ventures in 2017.
MedMen expects the takeover to be full this quarter. The transfer consists of having the company formally listed and buying and selling on the TSX Venture Exchange.
“This is very much about raising capital at a faster speed so that we can execute on our larger plan,” Yi stated.
MedMen is an operator of high-end marijuana dispensaries in luxurious zip codes, in addition to a cultivator and hashish merchandise producer, with a footprint spanning three states.
Earlier this yr, the company additionally launched a three way partnership with Cronos Group, a Canadian medical hashish producer, producer and distributor.
The agency has raised $135 million by means of two funding rounds in 2016 and 2017 and has grown to greater than 800 staff, Yi stated.
The company most lately wrapped up development on a 45,000-square-foot manufacturing unit in northern Nevada. It additionally simply opened a “first-of-its-kind” dispensary alongside the expensive Fifth Avenue hall in New York.