MedMen to Sell New York Operations for $88 Million; $15 Million Incremental Value

Rhea-AI Summary

MedMen Enterprises has reached a settlement agreement with Ascend Wellness Holdings, finalizing the sale of its New York operations. The deal ends litigation and brings $15 million in additional value to shareholders. Ascend will pay a total of $88 million, consisting of $73 million in debt assumption and $15 million in cash. This agreement is seen as a significant win, allowing MedMen to restructure its balance sheet and reduce debt. The transaction is expected to close within 30 days, enhancing MedMen's focus on core markets.

Positive

• Settlement agreement provides $15 million in additional value to shareholders.
• Total payment from Ascend Wellness Holdings amounts to $88 million.
• Settlement allows for restructuring of balance sheet and debt reduction.

Negative

• None.

MedMen Announces Settlement Agreement with Ascend Wellness Holdings

LOS ANGELES--(BUSINESS WIRE)-- MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF), a premier cannabis retailer with operations across the United States, today announced a definitive agreement with Ascend Wellness Holdings (“AWH”) that will allow the sale of MedMen’s New York operations to close for increased consideration. The transaction resolves the litigation between MedMen and AWH concerning the transaction and delivers $15 million in additional value to MedMen shareholders. Under the terms of the settlement agreement, AWH will pay MedMen $88 million: $73 million as an assumption of debt and $15 million in cash. Other terms of the transaction will be as originally announced in February 2021.

“This resolution is a clear win for MedMen shareholders, as the company will receive $15 million in additional value,” said Michael Serruya, MedMen’s Chairman of the Board. “This resolution enables MedMen to move forward with plans to significantly restructure its balance sheet, reduce debt, and focus on its core markets.”

The transaction is expected to close within thirty days.

ABOUT MEDMEN:

MedMen is a premier American cannabis retailer with an operational footprint in California, Nevada, Illinois, Arizona, Massachusetts, and Florida. MedMen offers a robust selection of high-quality products, including MedMen-owned brands MedMen Red and LuxLyte through its premium retail stores, proprietary delivery service, as well as curbside and in-store pickup. MedMen Buds, an industry-first loyalty program, provides exclusive access to promotions, product drops and content. MedMen believes that a world where cannabis is legal and regulated is safer, healthier, and happier. Learn more about MedMen at www.medmen.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220511005323/en/

MedMen Media Contact:

Lisa Weser

Trailblaze

MedMen@Trailblaze.co

MedMen Investor Relations Contact:

Investors@MedMen.com

Source: MedMen Enterprises Inc.

FAQ

What is the significance of MedMen's settlement with Ascend Wellness Holdings?

The settlement allows MedMen to receive an additional $15 million, resolving litigation and facilitating restructuring efforts.

How much will MedMen receive from Ascend Wellness in total?

MedMen will receive a total of $88 million, which includes $73 million in debt assumption and $15 million in cash.

When is the transaction between MedMen and Ascend expected to close?

The transaction is expected to close within 30 days.

What impact does the settlement have on MedMen's shareholders?

The settlement is viewed as a positive outcome, enhancing shareholder value by $15 million.