Treehouse Real Estate Investment Trust
raises $133 million, will use funds to acquire properties from
MedMen Enterprises Inc. along with other cannabis real
estate
MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN)
(OTCQX: MMNFF) (FSE: A2JM6N) today announced that Treehouse Real
Estate Investment Trust (“Treehouse”) has completed its first round
of capital raise at $133 million and will partially use the funds
to purchase properties from the Company.
The newly formed real estate investment vehicle looks to
capitalize on the fast-growing cannabis industry in the U.S. that
is projected to grow to $75 billion in gross sales by 2030,
according to Wall Street research firm Cowen & Co.
“This capital raise further proves the U.S. cannabis industry
today is more investable than ever,” said MedMen CEO and Co-founder
Adam Bierman. “MedMen’s relationship with Treehouse will allow us
to unlock significant value for MedMen shareholders by spinning out
our real estate holdings and deploying the proceeds into accretive
growth opportunities for the Company.”
Treehouse is a collaboration between MedMen and Stable Road
Capital, a Venice, California-based investment firm with successful
track records in real estate and cannabis. Treehouse is governed by
an independent board. Treehouse has a management contract with
MedMen to oversee day-to-day operations until Treehouse goes
public, at which point management will be internalized.
It is expected that Treehouse’s initial sale-leaseback
transactions will occur with MedMen. These potential
transactions include real estate related to retail stores, and
cultivation and production facilities. The Company intends to
use the proceeds from the prospective transactions to assist in
funding the buildout of its national footprint that includes 76
retail licenses and 16 cultivation and manufacturing licenses in 12
states. The Company currently operates 16 stores and 3 cultivation
and manufacturing facilities.
Subsequent to the initial transaction, Treehouse will have a
three-year right of first offer on additional MedMen-owned
facilities and development projects. With the launch of Treehouse,
MedMen has the opportunity to significantly reduce future capital
expenditures related to its retail and cultivation licenses.
To provide further details regarding the transaction and
strategy behind Treehouse, MedMen will host an analyst call with
Treehouse and Company officials on Tuesday, January 8, 2019 at 8:00
a.m. Eastern.
Webcast Information:A live audio webcast of the call will
be available on the Events and Presentations section of MedMen’s
website
at: https://investors.medmen.com/events-and-presentations/default.aspx and
will be archived for replay.
Calling Information:Toll Free Dial-In Number: (844)
559-7829International Dial-In Number: (647) 689-5387Conference ID:
3585847
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
ABOUT TREEHOUSE:Treehouse Real Estate Investment Trust,
Inc. is a newly-organized, externally managed real estate
investment company focused on the acquisition, ownership and
management of specialized retail and industrial properties leased
to experienced, state-licensed operators for their regulated
adult-use and medical-use cannabis facilities. Treehouse will
initially be externally managed and advised by an affiliate of
MedMen Enterprises Inc. Visit http://www.treehousereit.com
ABOUT STABLE ROAD CAPITAL:Stable Road Capital is a family
office employing an opportunistic approach to fundamental value
investing. The Firm focuses on acquiring and investing in high
quality operating businesses, assets and funds. While the Firm is
generally industry agnostic, Stable Road Capital has dedicated
considerable resources to advising and investing in the cannabis
sector, focusing on large vertically integrated players, individual
brands, and industry specific private equity funds.
Visit https://www.stableroadcapital.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 is not limited to, information concerning the proposed
sale and leaseback of certain MedMen properties, including the
contemplated timing and terms thereof and the contemplated impact
of the same on the financial position of MedMen.
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 others, the key factors that could cause actual results to
differ materially from those projected in the forward-looking
information and statements are the following: inability to locate
suitable acquisition targets; adverse changes in the public
perception of cannabis; changes in consumer demand for cannabis;
decreases in the prevailing prices for cannabis and cannabis
products in the markets in which the Company operates; adverse
changes in applicable laws; adverse changes in the application or
enforcement of current laws, including those related to taxation;
increasing costs of compliance with extensive government
regulation; changes in general economic, business and political
conditions, including changes in the financial markets; risks
related to licensing, including the ability to obtain the requisite
licenses or renew existing licenses for the Company’s operations;
dependence upon third party service providers, skilled labor and
other key inputs; risks inherent in the agricultural and retail
business; intellectual property risks; risks related to litigation;
dependence upon senior management; and the other risks disclosed in
the Company’s public filings. 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.
Key assumptions used herein are that the proposed sale and
leaseback of the applicable MedMen properties will be completed,
including on the current terms and anticipated timing. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190107006058/en/
MEDIA CONTACT:Briana ChesterSenior
PublicistBriana.chester@medmen.com
INVESTOR RELATIONS CONTACT:Stéphanie Van HasselHead of
Investor Relationsinvestors@medmen.com(323) 705-3025
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