As Medmen Enterprises Inc (OTCMKTS:MMNFF) continues to fight for a viable bottom in the equity chart, traders continue to watch the story unfold with interest. Adding to that interest, the company just announced certain amendments to its $250 million senior secured convertible credit facility arranged by Gotham Green Partners.
According to the release, “As a result of the amendments to the Facility, the aggregate amount that remains available to be borrowed has not changed. However, in order to minimize dilution given the current capital market environment, both parties have agreed to amend the size of both Tranche 3 and Tranche 4, as well as the timing of Tranche 3. Tranche 3 now consists of $10,000,000 in available credit and Tranche 4 consists of $115,000,000 in available credit. The parties anticipate that Tranche 3 will be funded within 30 days instead of the originally proposed date in December 2019.”
Medmen Enterprises Inc (OTCMKTS:MMNFF) frames itself as a company that, together with its subsidiaries, operates in the cannabis space in the United States.
The company cultivates, produces, possesses, uses, and distributes/retails cannabis in the recreational and medicinal cannabis marketplace. As of June 6, 2018, it owned and operated 18 licensed cannabis facilities under the MedMen brand name in California, Nevada, and New York.
The company frames itself as “the preeminent cannabis company in the United States” with multiple assets and operations in California, Nevada, New York, and Florida. MedMen owns and operates licensed cannabis facilities in cultivation, manufacturing, and retail, and is one of the most well-recognized cannabis brands in the world today.
Headquartered in Los Angeles, MedMen employs more than 800 workers across the United States. It was founded in 2010 by Adam Bierman and Andrew Modlin, two visionary entrepreneurs who saw not just a tremendous business opportunity in the growing legalization of marijuana, but a chance to re-define our society’s relationship with cannabis. MedMen supports sensible, clear and just drug laws.
The Company is the single largest financial supporter of progressive marijuana laws at the local, state and federal levels, giving directly to pro-legalization groups, industry organizations and political candidates.
The company is headquartered in Culver City, California. MedMen Enterprises Inc. is a subsidiary of The Medmen Of Nevada 2 Llc.
According to company materials, “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.”
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As noted above, MMNFF just announced certain amendments to its $250 million senior secured convertible credit facility arranged by Gotham Green Partners.
Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -30%. Moreover, the stock has seen a growing influx of trading interest, with the stock’s recent average trading volume running 35% over what the stock has registered over the longer term.
According to the release, “The Facility has also been amended to provide that funding of Tranche 4 will require the consent of both the Company and the lenders under the Facility. Certain of the reporting and financial covenants under the Facility have also been modified to provide the Company with additional balance sheet flexibility. The modifications include a reduction in required minimum cash balances, removal of restrictions on equity issuances and an additional ability to spin-out or borrow against certain non-core assets, in addition to sales and indebtedness that were permitted prior to the amendment.”
Now commanding a market cap of $227.5M, MMNFF has roughly $23.7M in cash on the books, which stands against about $84.4M in total current liabilities. One should also note that debt has been growing over recent quarters. MMNFF is pulling in trailing 12-month revenues of $130M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 15%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $MMNFF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MMNFF, either long or short, and we have not been compensated for this article.