LOS ANGELES--(BUSINESS WIRE)--MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQB: MMNFF) (FSE: A2JM6N) announced today that it has closed an additional tranche of its previously announced senior secured term loan (the “Facility”) with funds managed by Hankey Capital and an affiliate of Stable Road Capital (the “Lenders”). Pursuant to the terms of the Facility, the principal amount of the loan has been increased by C$5,661,920 to C$99,952,190. The principal amount under the Facility will accrue interest at a rate of 7.5 percent per annum, paid monthly, with a maturity date of 24 months following the date of closing. The proceeds from the Facility will be used for acquisitions, capital expenditures and other corporate expenses.

In connection with the increased principal under the Facility, an affiliate of MedMen has issued to the Lenders an additional 511,628 warrants, each being exercisable for one Class B Common Share of such company at a purchase price per share of C$6.09 (US$4.73) for a period of 30 months (“Lender Warrants”). Such Class B Common Shares are redeemable in accordance with their terms for Class B Subordinate Voting Shares of the Company.

In addition to providing a portion of the Facility, Stable Road Capital is providing advisory services to MedMen. Advisory services include introducing MedMen to brands and various service providers, advice on the Facility and providing advice with respect to MedMen’s planned structured sale of real estate assets. For its advisory services, an affiliate of MedMen has issued to Stable Road Capital 8,105,642 warrants at a purchase price per share of C$6.37 (US$4.97) and 511,628 warrants at a purchase price per share of C$6.09 (US$4.73) each being exercisable for one Class B Common Share of such company for a period of 30 months.

ABOUT MEDMEN:

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.

ABOUT HANKEY CAPITAL:

Hankey Capital is a single-family office based in Southern California. As a balance sheet lender, Hankey originates financing in the $2 million to $100 million-dollar range primarily secured by commercial real estate as well as other forms of collateral. The Firm specializes in niches overlooked by banks and other traditional capital sources. Through 3Q 2018, Hankey Capital has over $850 million in loans on its balance sheet. The Firm is part of privately-held Hankey Group of Companies lead by Don Hankey with assets nearing $10 billion.

http://www.hankeycapital.com/

ABOUT STABLE ROAD CAPITAL:

Stable Road Capital is a family office employing an opportunistic approach to fundamental value investing. The Firm focuses on acquiring and investing in high quality operating businesses, assets and funds. While the Firm is generally industry agnostic, Stable Road Capital has dedicated considerable resources to advising and investing in the cannabis sector, focusing on large vertically integrated players, individual brands, and industry specific private equity funds. https://www.stableroadcapital.com/

SOURCE: MedMen Enterprises