Cannabis multistate operator MedMen Enterprises finished its exit from the Florida market, having closed the sale of its assets for $67 million – $16 million less than when the sale was announced in February.
According to a news release, Los Angeles-headquartered MedMen sold all its Florida cannabis assets – including its medical marijuana business license, seven dispensaries, cultivation operations and existing inventory – to Green Sentry Holdings.
The deal also calls for the licensing of MedMen trademarks in the state to Green Sentry, which is based in Fort Lauderdale, Florida.
The final transaction was for $63 million in cash and another $4 million in liabilities assumed by Green Sentry.
The original deal called for Green Sentry to pay $83 million in cash for all of MedMen’s Florida assets.
“The sale of MedMen’s Florida assets marks an important step in the company’s restructuring efforts designed to provide greater financial flexibility and a stronger, leaner operating structure – and ultimately put us on a path to being EBITDA positive,” MedMen CEO Ed Record said in the release.
The sale leaves MedMen with assets in Arizona, California, Illinois, Massachusetts, Nevada and New York.
MedMen is pinning much of its hopes for the future on the upcoming New York recreational marijuana market, Record implied in the release.
“We are focused on maximizing our existing footprint, including our operations in New York,” he said.
“New York’s adult-use market will be game-changing for the entire industry, and we are considering all options to ensure strong shareholder return.”
MedMen trades on the Canadian Securities Exchange under the ticker symbol MMEN and on the over-the-counter markets as MMNFF.