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MedMen Acquires License and Assets of Managed Store in Orange County, California

MedMen Orange County is Currently Managed on behalf of Captor Capital Corp.

Acquisition Broadens Company’s Asset Portfolio in Largest Cannabis Market

LOS ANGELES–(BUSINESS WIRE)–MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N) has signed a definitive agreement (the “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). The store is currently MedMen branded and managed.

Upon closing, MedMen will issue 3,740,228 Class B subordinate voting shares (the “Shares”) to Captor Capital Corp., a Canadian publicly-traded investment company. At the current market price of the Shares, the transaction is valued at approximately US$16,000,000. 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 chief executive and co-founder. “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.”

Transaction Highlights:

  • The Santa Ana store is located in the only city in all of Orange County, population 3.2 million, to allow dispensaries.
  • The store is currently MedMen managed and branded, providing seamless integration.
  • Attractive deal valuation based on key store metrics, including revenue, margins, customer base and growth.

The transaction is subject to regulatory approvals by various local and state authorities and other customary closing conditions. The Company expects the transaction to close within 60 days.

MedMen Chief Executive Officer Adam Bierman and President Andrew Modlin together own a combined 2.8 percent of the common shares of Captor Capital. As such, an independent committee of the Board of Directors of the Company reviewed and approved the transaction.

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

SOURCE: MedMen Enterprises

Cautionary Note Regarding Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only MedMen’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of MedMen’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include, but are not limited to, information concerning the proposed acquisition, expectations regarding whether the proposed acquisition will be consummated, including whether conditions to the consummation of the proposed acquisition will be satisfied and whether the proposed acquisition will be completed on the current terms, the timing for completing the proposed acquisition, expectations for the effects of the proposed acquisition or the ability of the Company to successfully achieve business objectives, expectations regarding the cannabis market and expectations for other economic, business, and/or competitive factors.

By identifying such information and statements in this manner, MedMen is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of MedMen to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, MedMen has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the ability to consummate the proposed acquisition; the ability to obtain requisite regulatory approvals and third party consents and the satisfaction of other conditions to the consummation of the proposed acquisition on the proposed terms and schedule; the potential impact of the announcement or consummation of the proposed acquisition on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the diversion of management time on the proposed acquisition. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

Although MedMen believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and MedMen does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to MedMen or persons acting on its behalf is expressly qualified in its entirety by this notice.

Founder & Interim Editor of L.A. Cannabis News

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