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MedMen Announces Expenditure from AWH into MedMen’s New York Operations | Business enterprise

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NEW YORK & LOS ANGELES–(Company WIRE)–Feb 25, 2021–

MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF), a hashish retailer with functions throughout the U.S., these days declared the signing of a definitive investment decision arrangement (the “Investment Agreement”) with Ascend Wellness Holdings, LLC (“AWH”), whereby, subject matter to approval from the New York Point out Division of Health and other relevant regulatory bodies, AWH will complete an financial commitment (the “Investment”) totaling up to approximately $73 million in MedMen NY Inc. (“MMNY”), MedMen’s subsidiary in the condition of New York. In connection with the Expense, and topic to regulatory approval, MMNY will interact the providers of AWH pursuant to a management agreement (the “Management Agreement”) less than which AWH will advise on MMNY’s operations pending regulatory acceptance of the Expense transaction.

“We consider the proposed transaction will provide contemporary funds and a new viewpoint to New York’s health-related cannabis method and its individuals,” claimed Abner Kurtin, Founder of AWH.

Under the phrases of the Investment decision, at closing, MMNY will presume up to roughly $73 million of MedMen’s present secured debt, AWH will invest $35 million in funds in MMNY, and AWH New York, LLC will difficulty a senior secured promissory note in favor of MMNY’s senior secured loan provider in the principal amount of money of $28 million, confirmed by AWH, which funds expenditure and be aware will be used to cut down the quantities owed to MMNY’s senior secured loan company. Pursuing its expense, AWH will keep a managing interest in MMNY equal to somewhere around 86.7% of the fairness in MMNY, and be furnished with an choice to acquire MedMen’s remaining fascination in MMNY in the future. AWH ought to also make an supplemental financial investment of $10 million in exchange for additional fairness in MMNY, which expenditure will also be used to repay MMNY’s senior secured financial institution if adult-use cannabis gross sales start in MMNY’s dispensaries.

The transactions contemplated by the Expense Arrangement are matter to customary closing ailments, like acceptance from the New York State Section of Overall health and other relevant regulatory bodies.

Moelis & Company LLC served as distinctive money advisor to MedMen. Foley Hoag LLP served as authorized counsel for AWH.

MedMen is a U.S. cannabis retailer with flagship locations in Los Angeles, Las Vegas, Chicago, and New York. MedMen features a strong choice of significant-quality solutions, like MedMen-owned manufacturers [statemade], LuxLyte, and MedMen Pink as a result of its top quality retail outlets, proprietary delivery assistance, as nicely as curbside and in-retailer select up. MedMen Buds, an industry-very first loyalty application, offers exceptional obtain to promotions, product or service drops and information. MedMen believes that a world exactly where hashish is authorized and controlled is safer, healthier and happier. Discover far more about MedMen and The MedMen Basis at www.medmen.com.

AWH is a vertically built-in operator with belongings and associates in Illinois, Michigan, Ohio, Massachusetts and New Jersey. AWH owns and operates condition-of-the-art cultivation amenities, escalating award profitable strains and producing curated range of merchandise with impact-dependent categorization. AWH makes and distributes Ozone branded merchandise. For extra info, stop by www.awholdings.com.

Cautionary Observe Concerning Forward-Searching Details and Statements:

This press launch consists of selected “forward-wanting information” inside the meaning of relevant Canadian securities legislation and may well also incorporate statements that may possibly constitute “forward-looking statements” inside of the which means of the secure harbor provisions of the United States Personal Securities Litigation Reform Act of 1995. These types of forward-on the lookout info and forward-searching statements are not agent of historical information or information and facts or existing affliction, but in its place depict only MedMen’s beliefs relating to long term functions, options or aims, lots of of which, by their mother nature, are inherently unsure and outdoors of MedMen’s command. Generally, these forward-wanting info or forward-searching statements can be recognized by the use of ahead-on the lookout terminology this kind of as “expects”, “believes”, “plans”, “intends”, “anticipates” or versions of phrases and phrases implying that selected steps, events or success “may”, “could”, “would”, “might”, “will be taken”, “will continue”, “will occur” or “will be achieved”. This forward-seeking information and facts is based mostly on particular assumptions produced by administration and other elements utilized by administration in developing these info. The forward-searching statements contained in this launch incorporate, with no limitation, statements that presume MMNY is able of obtaining consent to the Expenditure from relevant regulatory authorities statements about the volume of MedMen’s secured personal debt that will be assumed by MMNY and MedMen’s ownership of MMNY on completion of the Expenditure.

Forward-hunting information and statements are not a promise of foreseeable future effectiveness and are based mostly upon estimates and assumptions of management at the day the statements are made, which includes among other points, estimates and assumptions about the transaction with AWH staying accomplished on present terms and recent contemplated timelines the occurrence of any event, adjust or other conditions that could give rise to the termination of the Expenditure Agreement the lack of ability of either occasion to consummate the Expense Settlement owing to the failure to satisfy disorders and covenants the incapability to attain needed regulatory approvals and third-bash consents in buy to consummate the transactions contemplated by the Investment Agreement the incapability of AWH to obtain sufficient money from internal and exterior sources to entire the Financial commitment or pay any break charges or related bills required below the Expense Agreement the incapability of MedMen to accessibility sufficient capital to reimburse AWH with respect to any deposits below the Investment decision Arrangement hazards linked to the disruption of management’s awareness from the Company’s ongoing small business operations thanks to the proposed transaction and the outcome of the announcement of the proposed transaction on the Firm’s relationships with its shoppers, suppliers and organization typically the lack of ability of management to correctly execute on, and accomplish the expected outcomes of, MedMen’s strategic ideas on the planned timetable or at all the capability to satisfy operational and economical covenants below MedMen’s present debt obligations uncertainties similar to the outbreak of COVID-19 and the influence it could have on the world-wide economic climate and retail sector, significantly the hashish retail sector in the states in which MedMen operates and on regulation of MedMen’s activities in the states in which it operates alterations in basic financial, business and political problems, which includes alterations in the monetary marketplaces improvements in relevant regulations normally and adverse foreseeable future legislative and regulatory developments involving clinical and recreational cannabis the pitfalls of working in the cannabis market in the United States, and those other risk variables reviewed in MedMen’s Kind 10 (as amended), and other constant disclosure filings, all out there less than MedMen’s profile on www.sedar.com and at www.sec.gov

Even though MedMen thinks that the assumptions and variables utilized in planning, and the expectations contained in, the ahead-searching data and statements are fair, undue reliance must not be put on these kinds of information and statements, and no assurance or warranty cane be supplied that such forward-seeking facts will verify to be accurate, as real final results and long run gatherings could vary materially from people expected in such data and statements. Should assumptions underlying the ahead-wanting statements prove incorrect, actual benefits might fluctuate materially from those described herein as meant, planned, expected, thought, estimated or expected.

The forward-searching information and facts and ahead-wanting statements contained in this press launch are made as of the date of this push release, and MedMen does not undertake to update any forward-looking data and/or forward-seeking statements that are contained or referenced herein, except in accordance with relevant securities regulations.

Forward-seeking statements contained in this information release are expressly certified by this cautionary notice.

Source: MedMen Enterprises

Electronic mail:[email protected]

Investor Relations Get in touch with

Interim Chief Fiscal Officer

Email:[email protected] AWH:

Director, Investor Relations

Key phrase: UNITED STATES NORTH The us CANADA CALIFORNIA NEW YORK

Field Key word: Different Medicine RETAIL Wellness OTHER RETAIL TOBACCO SPECIALTY Meals/BEVERAGE

Source: MedMen Enterprises Inc.

Copyright Enterprise Wire 2021.

PUB: 02/25/2021 07:58 PM/DISC: 02/25/2021 07:57 PM

Copyright Business Wire 2021.

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