Medmen arranges $120M bought deal with Canaccord
Medmen Enterprises Inc. has arranged a $120-million bought deal financing with Canaccord Genuity Corp. It will use the proceeds for working capital and general corporate purposes.
MEDMEN ENTERPRISES Inc. has entered into a letter of engagement with Canaccord Genuity Corp., under which Canaccord has agreed to purchase, as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters 17,648,000 units of the company, on a bought-deal basis pursuant to the filing of a short-form prospectus, subject to all required regulatory approvals, at a price per unit of $6.80 for gross proceeds of $120,006,400.
The company has agreed to grant the underwriters an overallotment option to purchase up to an additional 2,647,200 of the units at the issue price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the offering. The overallotment option may be exercised to acquire units, Class B shares and/or warrants (as defined below) of the company. If this option is exercised in full, an additional $18,000,960 will be raised pursuant to the offering and the aggregate gross proceeds of the offering will be approximately $138,007,360.
Each unit will comprise one Class B subordinate voting share of the company and one-half of one Class B share purchase warrant. Each whole warrant shall entitle the holder thereof to purchase one Class B share at an exercise price of $10, subject to adjustment in certain events, for a period of 36 months following the closing of the offering.
The company intends to use the net proceeds of the offering for working capital and other general corporate purposes. The closing date of the offering is scheduled to be on or about Nov. 30, 2018, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities.
About Medmen Enterprises Inc.
Medmen Enterprises is a leading cannabis company in the United States 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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Adam Bierman, Laurence Bernard Jr Brown, Stacey Hallerman, Mark Hutchison, Andrew Modlin, Andrew K Rayburn, Lisa Sergi Trager
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