MedMen Announces Investment decision from AWH into MedMen’s New York Functions

NEW YORK & LOS ANGELES–(Company WIRE)–MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF), a cannabis retailer with operations throughout the U.S., today introduced the signing of a definitive financial commitment settlement (the “Investment Agreement”) with Ascend Wellness Holdings, LLC (“AWH”), whereby, matter to approval from the New York State Division of Health and other relevant regulatory bodies, AWH will full an financial commitment (the “Investment”) totaling up to close to $73 million in MedMen NY Inc. (“MMNY”), MedMen’s subsidiary in the point out of New York. In relationship with the Investment decision, and subject to regulatory approval, MMNY will engage the companies of AWH pursuant to a administration settlement (the “Management Agreement”) under which AWH will recommend on MMNY’s operations pending regulatory acceptance of the Financial investment transaction.

“We believe the proposed transaction will provide fresh new capital and a new standpoint to New York’s professional medical cannabis plan and its individuals,” explained Abner Kurtin, Founder of AWH.

Agreement Conditions

Below the conditions of the Expenditure, at closing, MMNY will assume up to roughly $73 million of MedMen’s existing secured debt, AWH will devote $35 million in money in MMNY, and AWH New York, LLC will difficulty a senior secured promissory notice in favor of MMNY’s senior secured lender in the principal amount of $28 million, guaranteed by AWH, which dollars investment and notice will be utilised to lessen the quantities owed to MMNY’s senior secured lender. Adhering to its expense, AWH will hold a controlling interest in MMNY equal to around 86.7% of the fairness in MMNY, and be delivered with an option to acquire MedMen’s remaining desire in MMNY in the upcoming. AWH must also make an more financial investment of $10 million in trade for supplemental equity in MMNY, which expense will also be made use of to repay MMNY’s senior secured loan provider if adult-use cannabis income begin in MMNY’s dispensaries.

The transactions contemplated by the Investment Agreement are subject matter to customary closing disorders, including approval from the New York State Office of Overall health and other applicable regulatory bodies.

Advisors

Moelis & Business LLC served as unique monetary advisor to MedMen. Foley Hoag LLP served as lawful counsel for AWH.

About MedMen

MedMen is a U.S. cannabis retailer with flagship spots in Los Angeles, Las Vegas, Chicago, and New York. MedMen gives a sturdy collection of higher-high-quality merchandise, together with MedMen-owned brands [statemade], LuxLyte, and MedMen Purple via its quality retail suppliers, proprietary delivery support, as very well as curbside and in-shop choose up. MedMen Buds, an industry-initial loyalty system, delivers special access to promotions, product or service drops and written content. MedMen believes that a globe in which cannabis is legal and regulated is safer, healthier and happier. Master extra about MedMen and The MedMen Basis at www.medmen.com.

About AWH

AWH is a vertically built-in operator with belongings and associates in Illinois, Michigan, Ohio, Massachusetts and New Jersey. AWH owns and operates point out-of-the-art cultivation services, expanding award winning strains and producing curated choice of products and solutions with outcome-based mostly categorization. AWH provides and distributes Ozone branded merchandise. For more data, pay a visit to www.awholdings.com.

Cautionary Be aware With regards to Forward-On the lookout Facts and Statements:

This push launch consists of specific “forward-searching information” inside of the this means of applicable Canadian securities laws and may well also include statements that may constitute “forward-wanting statements” inside the this means of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These kinds of forward-seeking information and facts and forward-on the lookout statements are not representative of historic information or details or existing condition, but as an alternative characterize only MedMen’s beliefs about foreseeable future activities, ideas or goals, many of which, by their mother nature, are inherently uncertain and outside of MedMen’s management. Normally, these kinds of ahead-wanting information and facts or ahead-on the lookout statements can be discovered by the use of ahead-searching terminology these as “expects”, “believes”, “plans”, “intends”, “anticipates” or versions of text and phrases implying that selected actions, events or success “may”, “could”, “would”, “might”, “will be taken”, “will continue”, “will occur” or “will be achieved”. This ahead-hunting facts is based on specified assumptions created by administration and other components utilized by administration in creating this sort of information. The ahead-hunting statements contained in this launch incorporate, devoid of limitation, statements that assume MMNY is capable of obtaining consent to the Expenditure from relevant regulatory authorities statements pertaining to the amount of MedMen’s secured debt that will be assumed by MMNY and MedMen’s ownership of MMNY upon completion of the Expense.

Forward-wanting facts and statements are not a guarantee of potential effectiveness and are centered on estimates and assumptions of management at the day the statements are made, which includes among other factors, estimates and assumptions about the transaction with AWH remaining accomplished on recent terms and present contemplated timelines the incidence of any celebration, alter or other situations that could give increase to the termination of the Financial commitment Agreement the incapacity of either party to consummate the Expenditure Arrangement thanks to the failure to satisfy ailments and covenants the lack of ability to acquire demanded regulatory approvals and 3rd-social gathering consents in get to consummate the transactions contemplated by the Expenditure Agreement the incapacity of AWH to access sufficient money from internal and external resources to finish the Expense or pay any break charges or similar expenditures expected less than the Financial commitment Arrangement the inability of MedMen to obtain adequate funds to reimburse AWH with regard to any deposits below the Investment Agreement hazards related to the disruption of management’s attention from the Firm’s ongoing business enterprise functions because of to the proposed transaction and the result of the announcement of the proposed transaction on the Company’s relationships with its clients, suppliers and organization frequently the lack of ability of administration to correctly execute on, and obtain the predicted success of, MedMen’s strategic plans on the planned timetable or at all the capability to satisfy operational and monetary covenants below MedMen’s current financial debt obligations uncertainties relevant to the outbreak of COVID-19 and the impact it may perhaps have on the world wide financial system and retail sector, notably the cannabis retail sector in the states in which MedMen operates and on regulation of MedMen’s pursuits in the states in which it operates changes in basic economic, business enterprise and political disorders, which includes adjustments in the fiscal marketplaces modifications in relevant legislation commonly and adverse upcoming legislative and regulatory developments involving health care and recreational marijuana the threats of working in the marijuana marketplace in the United States, and people other hazard things talked about in MedMen’s Form 10 (as amended), and other steady disclosure filings, all obtainable underneath MedMen’s profile on www.sedar.com and at www.sec.gov

Although MedMen thinks that the assumptions and aspects utilised in making ready, and the anticipations contained in, the forward-looking information and statements are realistic, undue reliance need to not be placed on these information and facts and statements, and no assurance or assure cane be supplied that these types of forward-on the lookout data will establish to be exact, as actual results and long run occasions could differ materially from these expected in this sort of data and statements. Need to assumptions underlying the ahead-hunting statements show incorrect, actual effects may possibly vary materially from all those explained herein as meant, planned, predicted, thought, approximated or anticipated.

The ahead-searching facts and ahead-hunting statements contained in this press release are manufactured as of the date of this push launch, and MedMen does not undertake to update any ahead-hunting info and/or forward-hunting statements that are contained or referenced herein, except in accordance with relevant securities rules.

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

Resource: MedMen Enterprises