Cannabis financier Gotham Green Partners to invest $250 million in MedMen

Bethan Rose Jenkins, Cannabis News Writer/Editorial

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Finally, something good to report about MedMen.

The cannabis company’s name has been dragged through the mud quite a lot lately, what with a trail of lawsuits prompting reporters to spit out negative headlines that have undoubtedly tarnished MedMen’s allure. Nonetheless, the company is bouncing back and has recently revealed that it will be on the receiving end of a $250 million investment from private equity fund Gotham Green Partners (GGP).

MedMen, a California-based multi-state cannabis company, has made history with its convertible credit facility investment. It is said to be the largest investment to be made by a sole investor in a publicly traded cannabis company with U.S. operations.

How will MedMen use GGP’s investment to its advantage?

http://www.crainsnewyork.com/article/20170201/HEALTH_CARE/170209989/queens-cannabis-company-bloomfield-industries-to-move-upstate-after-being-acquired-following-a-period-of-poor-management-and-complaints-from-customers

(Pictured) MedMen co-founder and CEO, Adam Bierman

Shortly after the news of GGP’s investment in MedMen, the cannabis company’s stock (MMEN) climbed more than six percent above the previous day’s closing price on the Canadian Securities Exchange.

With the $250 million investment from GGP, MedMen plans to funnel the funds into various corporate activities. They include prospective acquisitions, technological advancements, and high-standard cultivation/production techniques.

“More than having adequate growth capital to fund all of their current operational needs (and eliminating the lingering overhang of future tag on offerings), we believe the GGP investment comes with many lateral strategic benefits, as they are the preeminent investor across the cannabis supply chain,” wrote the managing director at Northland Securities, Paul Penney, in an email to Marijuana Business Daily.

MedMen hasn’t received much good press lately

Nobody anticipated that such a colossal investment would be bestowed upon MedMen so soon. After all, the company was slammed with three separate lawsuits over the last few months. Combined, the three lawsuits demand hundreds of millions of dollars in damages.

Going public in Canada last year meant that MedMen was on the road to success, until the company’s CEO Adam Bierman was accused of making racist and sexist remarks. As a result of allegations made against Bierman in a breach-of-contract lawsuit filed by former chief financial officer James Parker on January 29, the New York Medical Cannabis Industry Association asked MedMen to relinquish its membership.

To make matters worse, there’s a good chance that the vertically-integrated cannabis company might lose its West Hollywood-based flagship store. Regardless, MedMen has fiercely denied Parker’s claims.

“James Parker worked at MedMen for less than a year and half, before resigning his employment in November 2018,” said the company spokesman Daniel Yi. “He has now filed a baseless wrongful termination lawsuit for his own personal financial gain. MedMen will vigorously defend itself in court.”

https://www.leafly.com/news/politics/rep-ted-lieu-medmen-make-history-in-venice