MedMen Enterprises Inc (CSE:MMEN) (OTC:MMNFF) has signed an agreement to acquire the retail operations and license for a location in Santa Ana, California, through an all-stock transaction with Captor Capital Corp (CSE:CPTR).
Upon closing, MedMen will issue 3,740,228 Class B subordinate voting shares to Captor, a Canadian publicly-traded investment company. At the current market price of the shares, the transaction is valued at approximately $16 million.
The final purchase price is subject to adjustment for accrued liabilities at the time of closing.
“MedMen Orange County is strategically located in one of the most affluent regions of southern California with a limited number of licensed dispensaries,” said Adam Bierman, MedMen CEO and co-founder.
The Santa Ana store is located in the only city in all of Orange County, which has a population of 3.2 million people. The store is currently MedMen-managed and branded, which should allow a seamless integration. The company expects the transaction to close within 60 days.
“This is an asset that we are already intimately familiar with through the management contract. We have direct visibility to market data, including consumer demographics and growth trends. This acquisition enhances our first mover advantage in a strategic location with robust sales and long-term growth potential,” said Bierman.
Separately, MedMen announced that Chief Financial Officer James Parker has resigned, and that Jim Miller, the company’s vice president of accounting, has been appointed interim chief financial officer until Parker’s successor is named.
Miller joined MedMen in January 2018. Before joining MedMen, Miller held several senior finance and accounting positions at leading entertainment firms such as the Walt Disney Company and Viacom.
MedMen Enterprises is a leading cannabis company in the US, with assets and operations across the country.
Contact Rene Pastor by [email protected]