The cannabis company had planned on selling warrants to shore up operations
Yesterday, MedMen Enterprises Inc. made official the cancellation of warrants to sell 97,785,140 Class B Subordinate Voting Shares of the company. According to the LA-based company, the move comes after the company’s cash flow has been in the green for two consecutive quarters, giving it greater financial freedom.
Jason Adler, co-founder and managing partner of Gotham Green Partners, has made it clear that he is very pleased with this result, as it was expected in advance. He added, “We challenged MedMen to prove they could achieve consecutive quarters of positive retail cash flow, and they knocked the ball out of the park.”
On the other hand, Tom Lynch, MedMen’s president and CEO, expressed that the company currently has a very promising future as they continue to develop new plans to grow the business as a whole. A year ago, the company was provided with a $30 million capital commitment from Gotham, bringing the total commitment to $280 million.
In addition, the company announced earlier this year an additional $10 million financing under its senior secured convertible facility led by funds affiliated with Gotham. Numbers have been very steady lately for MedMen. In fact, one month ago, the company was able to raise a total of $16.05 million after listing its units at $0.32 per unit. With these funds, the company’s Florida operations will now be propelled to further development.
“We are pleased to be able to extend the benefits of achieving several quarters of positive retail cash flow for our shareholders by reversing dilution through the cancellation of nearly 100 million in cash warrants,” explained Lynch.