LOS ANGELES--(BUSINESS WIRE)--MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF) today announced the cancellation of warrants to acquire 97,785,140 Class B Subordinate Voting Shares of the Company following two consecutive quarters of positive retail cash flow for the periods ended September 26, 2020 and December 26, 2020.
Achieving “positive retail cash flow” is determined and defined pursuant to the terms of certain warrants issued in connection with advances made under the Third Amended and Restated Securities Purchase Agreement dated as of January 11, 2021 between Gotham Green Admin 1, LLC, certain lenders thereunder and MedMen. MedMen currently has 658,912,617 shares outstanding. For further information about MedMen’s outstanding securities, see its reports and filings available under the Company’s profile on www.sedar.com and www.sec.gov.
“This is the first time in MedMen’s history that it has had two consecutive quarters of positive retail cash flow. Our future has never been brighter as we continue to execute our turnaround plan and continue to grow our business,” said Tom Lynch, Chairman and CEO of MedMen. “We’re pleased to be able to amplify the benefits of accomplishing multiple quarters of positive retail cash flow to our shareholders by reversing dilution through the cancellation of nearly 100 million in the money warrants.”
“We challenged MedMen to prove they could achieve consecutive quarters of positive retail cash flow and they hit the ball out of the park,” said Jason Adler, Managing Partner of Gotham Green Partners. “We’re pleased to forfeit the ‘in-the-money’ warrants as previously agreed.”
Positive retail cash flow is a contractually agreed calculation that is set out in the terms of the applicable warrants. It is not calculated under either IFRS or US generally acceptable accounting principles and it is not intended for use by investors.
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 [statemade], LuxLyte, and MedMen Red through its premium retail stores, proprietary delivery service, as well as curbside and in-store pick up. 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.
SOURCE: MedMen Enterprises Inc.