MedMen Enterprises’ strategy to spin off additional real-estate holdings and invest the proceeds in its nationwide expansion has taken another big step.
The Los Angeles-based cannabis company announced that Treehouse Real Estate Investment Trust, a collaboration between MedMen and the California-based investment firm Stable Road Capital, completed a $133 million raise and will use part of the funds to purchase MedMen properties.
Here are key details of the relationship:
- Treehouse, which is governed by an independent board, has a management contract with MedMen to oversee day-to-day operations until Treehouse goes public.
- In October, MedMen announced it had agreed to sell three cannabis properties in California and Nevada to the newly formed Treehouse for roughly $12.5 million.
- Treehouse has a three-year right of first offer on additional MedMen-owned facilities and development projects.
- MedMen, which currently operates 16 stores and three cultivation and processing facilities, plans to use the proceeds from property sales to Treehouse to help fund a national build-out. That potential footprint includes 76 retail licenses and 16 cultivation and manufacturing licenses in 12 states.