It’s no secret that Los Angeles-based MedMen has plans to go public in Canada.
But this week, the multistate marijuana company fully outlined how it expects to achieve that goal: a reverse takeover.
MedMen has signed a letter of intent with Toronto-based OutdoorPartner Media Corp. to combine the two firms’ business operations under the MedMen name, according a news release.
OutdoorPartner is a traditional and digital advertising company.
The deal charts a path for MedMen to go public without launching an initial public offering of its shares – the traditional route for most companies.
Instead, according to details shared in the letter of intent, OutdoorPartner will create a new class of voting shares that will be issued to security holders at MedMen, giving the firm a majority stake in the Toronto-based company.
An operator of high-end marijuana dispensaries, MedMen’s footprint spans three states. The firm recently wrapped up construction on a 45,000-square-foot factory in northern Nevada.
It’s also slated to open a “first-of-its-kind” dispensary April 20 along the pricey Fifth Avenue corridor in New York City.
More details of the agreement are expected to be released in the coming months, with the deal set to be completed during a shareholder meeting in the second quarter.
According to Business Insider, OutdoorPartner is an “unlisted public company,” meaning it’s likely MedMen will trade on over-the-counter markets in the United States while also trading on the Canadian Securities Exchange in Canada.