Cannabis firm MedMen finishes first $80 million funding round from Gotham Green

MedMen will use the investment from Gotham Green Partners to “operationalize the balance of [its] footprint"

Bethan Rose Jenkins, Cannabis News Writer/Editorial

According to a press release published by MedMen Enterprises Inc. at the end of April, the cannabis company has finalized its initial $80 million funding round of a $250,000 cash injection from Gotham Green Partners.

MedMen has “signed a binding term sheet for a senior secured convertible credit facility of up to $250,000,000 from funds managed by Gotham Green Partners, an investor in the global cannabis industry,” read the official statement.

“This strategic partnership with Gotham Green Partners represents another key milestone for MedMen and stems from our long-standing relationship with The Cronos Group and GGP’s brand portfolio,” said MedMen’s CEO, Adam Bierman, adding that, “the growth capital will be used to operationalize the balance of our footprint and we look forward to creating further alignment with GGP and their global cannabis platform.”
(Pictured) MedMen co-founder and CEO, Adam Bierman

MedMen and Gotham Green Partners: Who are they?

Cannabis retailer MedMen operates 19 licensed cultivation, manufacturing, and retail facilities throughout the U.S., three of which are flagship stores located in Los Angeles, Las Vegas and New York. Bierman launched the publicly-traded cannabis company back in 2010 alongside fellow Founder & President, Andrew Modlin.

The company that MedMen is receiving an investment from is Gotham Green Partners, LLC. Boasting operations in California and New York, the private equity firm is actively investing in the cannabis space. GGP has already invested $4 million in Chooze Corp and $32 million in Cannex Capital.

How will MedMen use the investment from Gotham Green Partners? $250,000 from GGP, of which $80,000 has already been funded, will be used to “operationalize the balance of [its] footprint,” according to a statement from MedMen.

Capital expenses will be covered by the investment, providing MedMen with the opportunity to bolster business operations inside 30 licensed stores.

MedMen also plans on growing its company footprint in the legal cannabis industry’s “core markets” through investments and acquisitions. Output will be amplified for MedMen’s branded products, all of which are sold in-store.

Furthermore, MedMen intends on using the investment from GGP to enhance the company’s existing digital infrastructure and technology. Through increasing cannabis cultivation and production, the company plans to turnover elevated profits.

This press release states that it “shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.”

Gotham Green Completes Initial $100 Million Tranche of the ...