LOS ANGELES, Nov. 9. 2018 /CNW/ – MedMen Enterprises Inc. (CSE:MMEN)(OTCQX: MMNFF) ("MedMen" or the "Company"), is pleased to announce that it has entered into a letter of engagement with Canaccord Genuity Corp. ("Canaccord"), under which Canaccord has agreed to purchase, as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters (collectively with Canaccord, the "Underwriters") 17,648,000 units of the Company (the "Units"), on a "bought deal" basis pursuant to the filing of a short form prospectus, subject to all required regulatory approvals, at a price per Unit of $6.80 (the "Issue Price") for gross proceeds of $120,006,400 (the "Offering").
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 2,647,200 of the Units at the Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. The over-allotment option may be exercised to acquire Units, Class B Shares, and/or Warrants (as defined below) of the Company. If this option is exercised in full, an additional $18,000,960 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be approximately $138,007,360.
Each Unit will be comprised of one Class B Subordinate Voting Share of the Company (each, a "Class B Share") and one-half of one Class B Share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant shall entitle the holder thereof to purchase one Class B Share at an exercise price of $10.00, subject to adjustment in certain events, for a period of 36 months following the closing of the Offering.
The Company intends to use the net proceeds of the Offering for working capital and other general corporate purposes.
The closing date of the Offering is scheduled to be on or about November 30, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.
MedMen Enterprises is a leading cannabis company in the U.S. with assets and operations across the country. Based in Los Angeles, MedMen brings expertise and capital to the cannabis industry and is one of the nation's largest financial supporters of progressive marijuana laws. Visit http://www.medmen.com
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