California-based cannabis company MedMen Enterprises Inc. (CSE:MMEN; OTCQX:MMNFF; FSE: A2JM6N) just secured millions in additional funding from a previously announced investment source.
Last month, the company revealed a $100 million investment from Gotham Green Partners. That deal included options for two additional tranches spaced out six months apart to bump the full investment up to $250 million.
Today, MedMen was advanced an extra $80 million in gross proceeds from that $250 million secured convertible credit facility. In exchange, the company issued more convertible senior notes to the investors at a value of $3.29 per share.
Those funds will go towards continued operations and new product launches as the company opens stores in Arizona, California, New York, Nevada, and additional U.S. states. Last month, MedMen opened an 11th overall store in California with a Sorrento Valley location that also marks a second storefront from the company in San Diego.
Aside from the current crop of MedMen stores operational in the previously mentioned states, the company has secured licenses for more than 30 retail sites in the newly opened Florida market. If all of those licensed locations eventually open, the company will operate more than 80 locations nationwide between its own stores and those from subsidiary PharmaCann.
In other recent news, MedMen lost its primary general counsel and Chief Operating Officer last month through resignations, while a new hire was brought on to round out the upper management team with the addition of a Chief Technical Officer.
Aside from upper management changes, the most headline-grabbing news from MedMen was easily the launch of a big budget video campaign to declare cannabis usage to be “the new normal” in North America.
Filmed by Spike Jonze and starring Gray’s Anatomy actor Jesse Williams, the clip was recently referenced on The Daily Show With Trevor Noah, which saw a spike in its views.
With cannabis usage on both the recreational and medical sides increasingly legalized on a state by state basis, companies such as MedMen have focused efforts on raising awareness and bringing cannabis into the mainstream business world.
Licensed producers in other countries are betting big on nationwide legalization arriving sooner rather than later in the U.S., with Canopy Growth Corporation (TSX: WEED; NYSE: CGC) entering an agreement to acquire Acreage Holdings, Inc. (CSE: ACGR.U) after marijuana is legalized at the federal level.