UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 22, 2022
MEDMEN ENTERPRISES INC
(Exact name of registrant as specified in its charter)
British Columbia | 000-56199 | 98-1431779 | ||
(State
or other jurisdiction of incorporation) |
(Commission File Number) | (IRS
Employer Identification No.) |
10115 Jefferson Boulevard, Culver City, CA 90232
(Address, including zip code, of principal executive offices)
Registrant’s telephone number, including area code (424) 330-2082
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.01 | Completion of Acquisition or Disposition of Assets. |
On August 22, 2022, MedMen Enterprises Inc. (the “Company”), through its wholly-owned subsidiary MME Florida LLC and its subsidiary, MM Enterprises USA, Inc., closed the sale to Florida-based private company, Green Sentry Holdings, LLC (“Green Sentry”), of substantially all of the Company’s Florida-based assets, including its license, dispensaries, inventory and cultivation operations, and assumption of certain liabilities. The consideration received by the Company is comprised of $63 million in cash and the assumption of approximately $4 million in liabilities by Green Sentry. The Company consummated the transaction pursuant to the terms of the Asset Purchase Agreement, dated February 27, 2022, as amended by the First Amendment, dated July 31, 2022, and the Second Amendment, dated August 22, 2022, which Second Amendment amended the purchase price and provided that $40 million of the purchase price be applied to the repayment of the Company’s Senior Secured Term Loan Facility in several installments. The amendments to the Asset Purchase Agreement also provide for a deferred rent escrow of approximately $550,000 from the purchase price. The deal also includes the license of the Company’s trademarks in the state.
Item 7.01 | Regulation FD Disclosure. |
On August 22, 2022, the Company issued a press release, which is attached to this Current Report on Form 8-K as Exhibit 99.1 and hereby furnished pursuant to this Item 7.01.
The information disclosed under this Item 7.01, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits |
Exhibit Number |
Description | |
10.1 | First Amendment to Asset Purchase Agreement dated July 31, 2022 among MME Florida, LLC, MM Enterprises USA, LLC, and Green Sentry Holdings, LLC. | |
10.2 | Second Amendment to Asset Purchase Agreement dated August 22, 2022 among MME Florida, LLC, MM Enterprises USA, LLC, and Green Sentry Holdings, LLC. | |
99.1 | Press Release dated August 22, 2022 | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: August 26, 2022 | MEDMEN ENTERPRISES INC | |
/s/ Ana Bowman | ||
By: | Ana Bowman | |
Its: | Chief Financial Officer |
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Exhibit 10.1
FIRST Amendment TO
ASSET PURCHASE AGREEMENT
This FIRST AMENDMENT TO ASSET PURCHASE AGREEMENT (the “Amendment”) is entered into this 31st day of July 2022, by and among MME Florida, LLC, a Florida limited liability company (“Seller”), MM Enterprises USA, LLC, a Delaware limited liability company (“MME USA”), and Green Sentry Holdings, LLC, a Florida limited liability company (“Buyer”). Each of Seller, MME USA, and Buyer are referred to herein individually as a “Party” and collectively as the “Parties”. Capitalized terms used but not otherwise defined or redefined herein shall have the meanings set forth in the Original Agreement (defined below).
RECITALS
WHEREAS, the Parties previously entered into that certain Asset Purchase Agreement, dated as of February 27, 2022 (the “Original Agreement”);
WHEREAS, the Parties desire to extend the outside closing date of the transaction,
WHEREAS, concurrently with the execution of the Original Agreement, Seller delivered to Buyer the Disclosure Schedules to the Asset Purchase Agreement dated February 27, 2022 (the “Disclosure Schedules”);
WHEREAS, following the execution of the Original Agreement, a claim was filed in the Circuit Court of the Thirteenth Judicial Circuit in and for Hillsborough County, Florida, Civil Division, captioned 5900 N. Fla. MAVESE, LLC vs. MME Florida, LLC and MM Enterprises USA, LLC, Case No. 22-CA-001952 (the “Tampa Litigation”);
WHEREAS, pursuant to Section 9.08 of the Original Agreement, the Original Agreement may be amended upon the written agreement of all Parties to the Original Agreement; and
WHEREAS, the Parties desire to amend the Original Agreement and the Disclosure Schedules as set forth herein.
NOW, THEREFORE, in consideration of the valuable consideration set forth herein, the sufficiency of which is hereby acknowledged, the Parties agree as follows:
1. The following defined terms shall be added to Exhibit A of the Original Agreement:
“Deferred Rent Holdback” shall mean Five Hundred and Fifteen Thousand Dollars ($515,000.00).
“Second Amendment to Key West Lease” shall mean that certain Second Amendment to Lease Agreement dated July 31, 2018, by and between 130 Duval Street, Inc., a Florida corporation and MME Florida, LLC, a Florida limited liability company, for the premises located at 130 Duval Street, Key West, Florida 33304.
2. The final sentence of Section 1.06 of the Original Agreement shall be struck in its entirety and replaced with the following language:
Upon Closing, as described in Section 2.01 and 2.02, Buyer shall pay the Purchase Price (net of the Deposit) less the Deferred Rent Holdback by wire transfer to Seller of immediately available funds in accordance with the wire transfer instructions set forth on Section 1.06 of the Disclosure Schedules, and the Deposit shall be wired to the Seller by the Escrow Agent.
3. All references to the words “July 31, 2022” in the Original Agreement shall be replaced by the words “August 8, 2022”.
4. Section 2.02(b)(i) of the Original Agreement shall be struck in its entirety and replaced with the following language:
the Purchase Price less the Deferred Rent Holdback.
5. Section 5.04 of the Original Agreement shall be struck in its entirety and replaced with the following language:
Payment of Deferred Rent. Buyer shall use the Deferred Rent Holdback to timely satisfy its obligations (as successor to Seller) under Section 6 of the Second Amendment to Key West Lease. In the event that the “Deferred Rent” is no longer required to be paid by Buyer to the landlord under the Second Amendment to Key West Lease for any reason following the Closing, the Deferred Rent Holdback remaining and not paid to the landlord shall be paid to Seller within three (3) business days of the determination that payment of the Deferred Rent is no longer required. For the avoidance of doubt, Buyer is released from any obligation to pay Seller any portion of the Deferred Rent Holdback paid to the landlord in satisfaction of Deferred Rent under the Key West Lease.
6. Section 5.08 of the Original Agreement shall be struck in its entirety.
7. The following shall be added as number “9.” on Schedule 3.14(a) of the Disclosure Schedules:
5900 N. Fla. MAVESE, LLC vs. MME Florida, LLC and MM Enterprises USA, LLC; filed in the Circuit Court of the Thirteenth Judicial Circuit in and for Hillsborough County, Florida, Civil Division; Case No. 22-CA-001952
8. The Parties agree that to the extent the Tampa Litigation is not resolved prior to the Closing, Seller will indemnify Buyer for any Losses it incurs as a result of the Tampa Litigation pursuant to Section 7.02(a)(iv) of the Original Agreement; provided that the limitations in Sections 7.02(b)(i) and 7.02(b)(ii) of the Original Agreement shall not apply to the Tampa Litigation and provided, further, that in the event the asset purchase is not revised to include a promissory note from Buyer to Seller that $300,000.00 of the Purchase Price will be placed into escrow on terms mutually agreed between Buyer and Seller (the “Tampa Escrow”).
9. This Amendment may be executed in any number of counterparts (including by facsimile, .pdf or electronic transmission), each of which shall be deemed an original, but all of which when taken together shall constitute one instrument.
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10. This Amendment shall be governed by the laws of the State of Florida, without regard to its conflict of laws provisions.
11. All terms and provisions of the Original Agreement that are not expressly amended or modified by this Amendment will remain in full force and effect. In the event of any conflict between any of the terms of the Original Agreement and the terms of this Amendment, the terms of this Amendment will control.
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IN WITNESS WHEREOF, the parties have executed this Amendment to be executed this 30th day of July, 2022.
SELLER:
MME Florida, LLC
By: | /s/ Edward Record | |
Name: | Edward Record | |
Title: | Chief Executive Officer | |
MME USA, LLC | ||
MM Enterprises USA, LLC | ||
By: | /s/ Edward Record | |
Name: | Edward Record | |
Title: | Chief Executive Officer | |
BUYER | ||
Green Sentry Holdings, LLC | ||
By its sole member, High End Holdings, LLC | ||
By: | /s/ Brady Cobb | |
Name: | Brady Cobb | |
Title: | Manager |
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Exhibit 10.2
SECOND AMENDMENT
TO
ASSET PURCHASE AGREEMENT
This SECOND AMENDMENT TO ASSET PURCHASE AGREEMENT (the “Second Amendment”) is entered into this 22nd day of August 2022, by and among MME Florida, LLC, a Florida limited liability company (“Seller”), MM Enterprises USA, LLC, a Delaware limited liability company (“MME USA”), and Green Sentry Holdings, LLC, a Florida limited liability company (“Buyer”). Each of Seller, MME USA, and Buyer are referred to herein individually as a “Party” and collectively as the “Parties”. Capitalized terms used but not otherwise defined or redefined herein shall have the meanings set forth in the Original Agreement (defined below).
RECITALS
WHEREAS, the Parties previously entered into that certain Asset Purchase Agreement, dated as of February 27, 2022 (the “Original Agreement”), as amended by that certain First Amendment to Asset Purchase Agreement dated July 31, 2022 (the “First Amendment” and, collectively the “Asset Purchase Agreement”);
WHEREAS, the Parties desire to extend the outside closing date of the transaction,
WHEREAS, pursuant to Section 9.08 of the Asset Purchase Agreement, the Asset Purchase Agreement may be amended upon the written agreement of all Parties to the Asset Purchase Agreement; and
WHEREAS, the Parties desire to further amend the Asset Purchase Agreement and the Disclosure Schedules as set forth herein.
NOW, THEREFORE, in consideration of the valuable consideration set forth herein, the sufficiency of which is hereby acknowledged, the Parties agree as follows:
1. The defined term “Deferred Rent Holdback” in Exhibit A of the Asset Purchase Agreement shall be amended to say “Deferred Rent Escrow”.
2. The following shall be added to Schedule 1.02 which schedules assets specifically excluded from the Purchased Assets:
“Lease Agreement between 5900 N. Fla Ave MAVSE, LLC, as landlord, and Seller, as tenant, dated September 14, 2018, as amended, for property with a street address of 5900 N. Florida Avenue, Tampa, FL 33604.”
3. Section 1.06 of the Asset Purchase Agreement shall be struck in its entirety and replaced with the following language:
(a) The aggregate purchase price for the Purchased Assets shall be Sixty-Three Million and 00/100 Dollars ($63,000,000.00) (the “Purchase Price”), plus the assumption of the Assumed Liabilities and reimbursement to Seller of the August Lease Payments. Upon Closing, as described in Section 2.01 and 2.02 of the Original Agreement, Buyer shall pay Forty Million and 00/100 Dollars of the Purchase Price (the “Closing Payment”) and the amount of Three Hundred Fifty Three Thousand Six Hundred and Seventy Eight Dollars and thirty one cents ($353,678.31) as set forth on Schedule A (the “August Lease Payments”) as follows:
(i) (Seller directs Buyer to pay Twenty-Five Million and 00/100 Dollars ($25,000,000.00) of the Closing Payment directly to Hankey Capital, LLC, a California limited liability company, (“Hankey”) in its capacity as lender under that certain Senior Secured Commercial Loan Agreement, dated as of October 1, 2018, by and between Hankey as lender and MM CAN USA, INC., a California corporation, as borrower (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time, the “Senior Commercial Loan Agreement”), by wire transfer of immediately available funds in accordance with the wire transfer instruction set forth on Section 1.06 of the Disclosure Schedules or as otherwise directed by Hankey in writing, which payment shall be made without any right to offset, deduction, or withholding; and
(ii) Buyer shall pay the remaining Fifteen Million Three Hundred Fifty Three Thousand Six Hundred and Seventy Eight Dollars and Thirty-one Cents ($15, 353,678.31) of the Closing Payment to Seller by wire transfer of immediately available funds in accordance with the wire transfer instructions set forth on Section 1.06 of the Disclosure Schedules or as otherwise directed in writing by Seller,
(iii) Buyer has previously deposited in escrow with Kahan & Kliger, P.A., a deposit of $2,000,000 (the “Deposit”). The Deposit shall be returned by wire to the Buyer by the Escrow Agent.
(b) The remainder of the Purchase Price shall be paid as follows:
(i) Eleven Million Five Hundred Thousand and 00/100 Dollars ($11,500,000.00) paid by wire transfer of immediately available funds on or before September 15, 2022 (the “First Installment”), of which First Installment, Seller directs Buyer to pay Hankey directly, in its capacity as lender under the Senior Commercial Loan Agreement, by wire transfer of immediately available funds, Six Million Five Hundred Thousand Dollars ($6,500,000.00) in accordance with the wire transfer instruction set forth on Section 1.06 of the Disclosure Schedules or as otherwise directed by Hankey in writing; and Buyer shall pay the remaining Five Million Dollars ($5,000,000.00) of the First Installment to Seller by wire transfer of immediately available funds in accordance with the wire transfer instructions set forth on Section 1.06 of the Disclosure Schedules and
(ii) Eleven Million Five Hundred Thousand and 00/100 Dollars ($11,500,000.00) paid by wire transfer of immediately available funds on or before March 31, 2023 (the “Second Installment”), of which Second Installment, Seller directs Buyer to pay Hankey directly, in its capacity as lender under the Senior Commercial Loan Agreement, by wire transfer of immediately available funds, Eight Million Five Hundred Thousand Dollars ($8,500,000.00), in accordance with the wire transfer instruction set forth on Section 1.06 of the Disclosure Schedules or as otherwise directed by Hankey in writing; and Buyer shall pay the remaining Three Million Dollars ($3,000,000.00) of the Second Installment to Seller by wire transfer of immediately available funds in accordance with the wire transfer instructions set forth on Section 1.06 of the Disclosure Schedules. Each payment contemplated under this Section 1.06(b) shall be made without any right to offset, deduction, or withholding. A Promissory Note and Security Agreement representing Buyer’s obligations to pay the First Installment and Second Installment (without duplication) shall be executed and delivered by the Parties as closing deliverables consistent with Section 2.02 of the Asset Purchase Agreement.
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4. All references to the words “July 31, 2022” in the Asset Purchase Agreement shall be replaced by the words “August 22, 2022”, and the “Closing Date” shall be August 22, 2022.
5. Section 2.02(b)(i) of the Asset Purchase Agreement shall be struck in its entirety and replaced with the following language:
“the Closing Payment and the August Lease Payments;”
6. Section 5.04 of the Asset Purchase Agreement shall be struck in its entirety and replaced with the following language:
“Deferred Rent Escrow. At the Closing, Seller shall fund the Deferred Rent Escrow in the amount of Five Hundred Fifty Four Thousand One Hundred Sixty two Dollars and fifty cents ($554,162.50) with a licensed escrow agent of Seller’s choice with instructions to the Escrow Agent to disburse the escrowed amount as necessary to timely satisfy Buyer’s obligations (as successor to Seller) under Section 6 of the Second Amendment to Key West Lease. In the event that any portion of the “Deferred Rent” is no longer required to be paid by Buyer to the landlord under the Second Amendment to Key West Lease for any reason following the Closing, the portion of the Deferred Rent Escrow not required to be paid to landlord shall be returned by the escrow agent to Seller within three (3) business days of the determination that payment of the Deferred Rent is no longer required.”
7. Paragraph 8 of the First Amendment shall be struck in its entirety and replaced with the following language, with the effect of removing the previous escrow requirement:
The Parties agree that to the extent the Tampa Litigation is not resolved prior to the Closing, Seller will indemnify Buyer for any Losses it incurs as a result of the Tampa Litigation pursuant to Section 7.02(a)(iv) of the Original Agreement; provided that the limitations in Sections 7.02(b)(i) and 7.02(b)(ii) of the Original Agreement shall not apply to the Tampa Litigation.
8. Schedule 1.03(a)(v) of the Disclosure Schedules shall be struck in its entirety and replaced with the following language:
Any and all accrued liabilities associated with the Leases, including but not limited to all August 2022 unpaid lease obligations including the amount of Two Hundred Twenty Seven Thousand One Hundred Thirty Five Dollars and Eighteen Cents ($227,135.18) as set forth on Schedule B, all unpaid lease obligations for the period May through July 2022 due to Aventine Property Group a/k/a Treehouse Real Estate Investment Trust, Inc. (“Treehouse”) including the amount of Six Hundred Thirty Six Thousand Two Hundred Ninety Eight Dollars and Sixty Nine Cents ($636,298.69), all deferred lease obligations including the amount of Two Million Six Hundred Nine Thousand Four Hundred Forty Nine Dollars and Thirty Three Cents ($2,609,449.33) to be paid to Treehouse, all payments relating to remediation work sought by Treehouse for the property located at 11190 San Jose Blvd, Jacksonville, Florida in the total amount of Four Hundred Ninety Eight Thousand Six Hundred and Ninety Dollars and Ninety Seven Cents ($498,690.97), and any outstanding accounts payable balances as of the closing date related to unsold inventory or relating to service periods extending after the closing date including but not limited to such items as utilities and insurance.
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9. Conditioned upon the Closing of the Transaction in accordance with the terms of the Asset Purchase Agreement, as amended by this Second Amendment, Seller agrees to waive any and all requirements in the Asset Purchase Agreement and/or the Disclosure Schedules requiring written consents of the landlords under the Leases consenting to Buyer’s assignment and assumption of tenant’s rights under the Leases. For the avoidance of doubt, the Parties agree that the Transaction will close without Seller obtaining and delivering such landlord consents.
10. Conditioned upon the Closing of the Transaction in accordance with the terms of the Asset Purchase Agreement, as amended by this Second Amendment, the parties agree to consummate the Transaction on an “as-is” basis with respect to the condition of the tangible Purchased Assets, meaning that the representation and warranties in Sections 3.08, 3.09, 3.10(k) and 3.11 of the Asset Purchase Agreement (collectively, the “Condition Representations”) will terminate as of the Closing Date. Buyer will not be entitled to any of the indemnification rights set forth in Section 7.02 of the Asset Purchase Agreement with respect to violations of the Condition Representations after the Closing Date.
11. Section 9.07 of the Asset Purchase Agreement shall be struck in its entirety and replaced with the following language:
This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed, provided that, (a) Buyer may assign (including without limitation, any collateral assignment) all of its rights under this Agreement to Hankey pursuant to that certain Collateral Assignment of Rights, dated as of the date hereof, by and among the Buyer and the other assignors party thereto as assignors, and Hankey, as assignee, without the consent of any other party hereto, and (b) Seller may collaterally assign all its right under this Agreement (i) to Hankey in its capacity as lender under the Senior Commercial Loan Agreement and (ii) to Superhero Acquisition Corp. (“Superhero”), as successor to Gotham Green Admin 1, LLC, in its capacity as Collateral Agent, under that certain Third Amended and Restated Guaranty and Security Agreement, dated as of August 17, 2021, without the consent of any other party hereto. Any other purported assignment in violation of this Section shall be null and void. No assignment shall relieve the assigning party of any of its obligations hereunder.
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12. Section 9.08 of the Asset Purchase Agreement shall be struck in its entirety and replaced with the following language:
Amendment and Modification; Waiver. Subject to Section 9.15, this Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No failure to exercise, or delay in exercising, any right or remedy arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy.
13. The following shall be added as Section 9.15 of the Asset Purchase Agreement:
Third Party Beneficiary Rights. Except as provided in this Section 9.15, no provision of this Agreement is intended to confer any rights, benefits, remedies, obligations or liabilities hereunder upon any Person other than the parties hereto and their respective successors and permitted assigns; provided that Hankey and Superhero shall each be an intended third party beneficiary of Sections 1.06, 9.07, and 9.08, and shall be entitled to enforce and amend such provisions directly (and no amendment or modification to such provisions in respect to Hankey or Superhero may be made without Hankey’s or Superhero’s prior written consent).
14. Anything herein to the contrary notwithstanding, (a) the payment obligations of the Buyer and the liens and security interests securing the obligations evidenced by the Asset Purchase Agreement (as amended from time to time) granted by the Buyer, the exercise of any right or remedy with respect thereto, and certain of the rights of the Seller hereof are subject to the provisions of the Intercreditor and Subordination Agreement dated as of August 22, 2022 (as amended, restated, supplemented, or otherwise modified from time to time, the “Intercreditor and Subordination Agreement”), by and among Hankey Capital, LLC, as Senior Agent, and MME Florida, LLC, as Subordinated Lender and (b) any rights of Seller evidenced by the Asset Purchase Agreement (as amended from time to time) of the Seller, the exercise of any right to remedy with respect thereto, are subject to the provisions of the Intercreditor and Subordination Agreement dated as of August 22, 2022, as amended, restated, supplemented, or otherwise modified from time to time by and among Hankey Capital, LLC, in its capacity as lender under the Senior Commercial Loan Agreement, and Superhero Acquisition Corp (“Superhero”), as successor to Gotham Green Admin 1, LLC, in its capacity as Collateral Agent.
15. This Amendment may be executed in any number of counterparts (including by facsimile, .pdf or electronic transmission), each of which shall be deemed an original, but all of which when taken together shall constitute one instrument.
16. This Amendment shall be governed by the laws of the State of Florida, without regard to its conflict of laws provisions.
17. All terms and provisions of the Original Agreement that are not expressly amended or modified by this Amendment will remain in full force and effect. In the event of any conflict between any of the terms of the Original Agreement and the terms of this Amendment, the terms of this Amendment will control.
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IN WITNESS WHEREOF, the undersigned have caused this Amendment to be executed as of the date first written above.
SELLER:
MME Florida, LLC
By: | /s/ Edward Record | |
Name: | Edward Record | |
Title: | Chief Executive Officer | |
MME USA, LLC | ||
MM Enterprises USA, LLC | ||
By: | /s/ Edward Record | |
Name: | Edward Record | |
Title: | Chief Executive Officer | |
BUYER | ||
Green Sentry Holdings, LLC, by its sole member, | ||
High End Holdings, LLC | ||
By: | /s/ Brady Cobb | |
Name: | Brady Cobb | |
Title: | Manager |
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Exhibit 99.1
MedMen Completes Sale of Florida Assets
08/22/2022
Company considering strategic alternatives for New York’s adult-use market.
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 the close of a $67 million deal with Florida-based private company Green Sentry Holdings LLC (“Green Sentry”) for the Company’s Florida-based operations, including its license, dispensaries, inventory, and cultivation operations. The deal is comprised of $63 million in cash and approximately $4 million in liabilities to be assumed by Green Sentry. The deal also includes the license of MedMen’s trademarks in the state.
“We are pleased to announce the successful completion of this deal, particularly given the challenging economic environment we are operating in,” said Ed Record, MedMen’s CEO. “The sale of MedMen’s Florida assets marks an important step in the company’s restructuring efforts designed to provide greater financial flexibility and a stronger, leaner operating structure – and ultimately put us on a path to being EBITDA positive.”
Continued Record, “We also are making great strides in improving our relationships with our partners and vendors, as well as increasing our support of social equity initiatives – both are priorities as we reestablish MedMen’s company culture and brand.”
MedMen also announced it’s currently exploring strategic alternatives for New York, where the Company operates a cultivation facility and four dispensaries under the state’s existing medical program. MedMen’s operational footprint is primed to benefit from the pending rollout of recreational sales in New York.
Added Record, “We are focused on maximizing our existing footprint, including our operations in New York. New York’s adult-use market will be game-changing for the entire industry, and we are considering all options to ensure strong shareholder return. This includes the potential sale of assets and/or licensing of the MedMen trademark.”
Terms of the agreement with Green Sentry are available in an 8-K filed on Aug. 22, 2022.
About MedMen:
MedMen is a premier American cannabis retailer with an operational footprint in California, Nevada, Illinois, Arizona, Massachusetts, and New York. MedMen offers a robust selection of high-quality products, including MedMen-owned brands MedMen Red, Moss 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.
Forward Looking Statements:
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of Canadian securities laws (each referred to as “forward-looking statements”). Forward-looking statements include statements regarding intentions, beliefs, projections, outlook, analyses, or current expectations. Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to MedMen, as applicable, or that MedMen, deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements, and you should not rely on them as predictions of future events. The forward-looking statements included in this communication are made as of the date of this communication and MedMen does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220822005677/en/
MedMen Media Contact:
Lisa Weser
Trailblaze
MedMen@Trailblaze.co
MedMen Investor Relations Contact:
Investors@MedMen.com
Source: MedMen Enterprises Inc.