Los Angeles-based MedMen Enterprises says it expects to increase up to 75 million Canadian dollars ($57 million) in a bought-deal equity financing plan, with the proceeds to be used to expand its U.S. retail footprint.
Here’s a rundown of the deal:
- Toronto-based Eight Capital and Cormark Securities – as co-lead underwriters and joint bookrunners – have agreed to buy 13.6 million models of the multistate hashish agency at a worth of CA$5.50 per unit.
- It consists of an over-allotment choice that may permit underwriters to buy a further 15% of models on the similar worth.
- If the choice is exercised, MedMen will obtain a further CA$11.25 million ($eight.52 million), bringing the full gross proceeds to CA$86.25 million ($65.35 million).
In addition to increasing operations, MedMen stated it plans to use the funds to develop new cultivation and manufacturing amenities and for working capital.
The agency operates 19 licensed amenities in California, Nevada and New York.