MedMen Announces Completion of Sale of Two Properties to Cannabis REIT
Rendering of Desert Hot Springs facility (Graphic: Business Wire)
March 14, 2019 07:00 AM Eastern Daylight Time
LOS ANGELES--(BUSINESS WIRE)--MedMen Enterprises Inc. ("MedMen" or the "Company") (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N) today announced that it has completed the sale of two properties to Treehouse Real Estate Investment Trust, Inc. ("Treehouse") with gross proceeds of approximately $33.5 million and net proceeds of approximately $30.6 million after repayment of debt.
"This is our second transaction with Treehouse and we've now freed up nearly $49 million to invest directly into our growth initiatives," said Adam Bierman, MedMen's chief executive officer and co-founder.
The properties are comprised of a retail storefront in Las Vegas, Nevada and a cultivation, manufacturing and production facility in Desert Hot Springs, California.
The Las Vegas property is located on Highland Drive near the Las Vegas Strip. The store is scheduled to open later in calendar year 2019. The property is 10,417 square feet and will feature a 30'x70' LED glass store front. It will be the Company's largest store to date. Las Vegas ranks as one of the world's most visited tourist destinations, with more than 42 million visitors in 2018, according to Statista. Nevada legalized adult-use sales in 2017 and revenue for calendar year 2019 are projected to exceed $600 million according to Cowen, Inc. MedMen currently operates three stores in Las Vegas.
The Desert Hot Springs, California, property is comprised of an approximately 45,000 square foot, state-of-the-art Dutch greenhouse offering complete climate control and including manufacturing and production capabilities. The facility recently received its certificate of occupancy and is expected to commence producing the Company's in-house brands later this year.
ABOUT MEDMEN:
MedMen is a cannabis retailer with operations across the U.S. and flagship stores in Los Angeles, Las Vegas and New York. MedMen's mission is to provide an unparalleled experience that invites the world to discover the remarkable benefits of cannabis because a world where cannabis is legal and regulated is a safer, healthier and happier world. Learn more at www.medmen.com.
ABOUT TREEHOUSE:
Treehouse Real Estate Investment Trust, Inc. is an externally managed real estate investment company organized in 2018 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.
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words like "may," "will," "likely," "should," "expect," "anticipate," "future," "plan," "believe," "intend," "goal," "seek," "estimate," "project," "continue" and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, changes in the condition of the U.S. economy and, in particular, the U.S. real estate market.
The forward-looking statements included in this press release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
SOURCE: MedMen Enterprises
Briana Chester
briana.chester@medmen.com
Stéphanie Van Hassel
VP of Investor Relations
investors@medmen.com