Los Angeles-based MedMen Enterprises says it expects to raise up to 75 million Canadian dollars ($57 million) in a bought-deal equity financing plan, with the proceeds to be used to expand its U.S. retail footprint.
Here’s a rundown of the deal:
- Toronto-based Eight Capital and Cormark Securities – as co-lead underwriters and joint bookrunners – have agreed to purchase 13.6 million units of the multistate cannabis firm at a price of CA$5.50 per unit.
- It includes an over-allotment option that will allow underwriters to purchase an additional 15% of units at the same price.
- If the option is exercised, MedMen will receive an additional CA$11.25 million ($8.52 million), bringing the total gross proceeds to CA$86.25 million ($65.35 million).
In addition to expanding operations, MedMen said it plans to use the funds to develop new cultivation and production facilities and for working capital.
The firm operates 19 licensed facilities in California, Nevada and New York.