MedMen establishes and amends US$285 million senior secured convertible credit facility from Gotham Green Partners

On Apr. 23, 2019, MedMen Enterprises Inc. entered into definitive agreements in respect of an up to US$250 million senior secured convertible credit facility led by funds affiliated with Gotham Green Partners, an investor in the global cannabis industry.

The transaction represents one of the largest private equity investments within the cannabis sector during 2019.

The credit facility has been and will be accessed in tranches through subscriptions by the lenders of notes co-issued by MedMen and MM CAN USA, Inc., a subsidiary of MedMen, which notes are convertible into subordinate voting shares of MedMen.

On Mar. 27, 2020, MedMen and the lenders amended the credit facility to expand the funding capacity to up to US$285 million, to amend the terms of the existing tranches completed to date and to amend certain financial covenants under the credit facility to provide MedMen with additional balance sheet flexibility.

MedMen has used the net proceeds from the credit facility to assist in funding the build-out of its national footprint and for operational needs.

Cassels Brock & Blackwell LLP acted as Canadian counsel for MedMen, with a deal team that included Shaun Khullar (securities and cannabis) and Patience Omokhodion (banking and specialty finance). 

Raines Feldman LLP acted as U.S. counsel for MedMen.

SkyLaw LLP acted as Canadian counsel.

Honigman LLP acted as U.S. counsel for Gotham Green Partners.