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.

Stockwatch Daily - - FRONT PAGE - Ms. Bri­ana Ch­ester re­ports

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.

We seek Safe Har­bor.

Adam Bier­man, Lau­rence Bernard Jr Brown, Stacey Haller­man, Mark Hutchi­son, An­drew Modlin, An­drew K Ray­burn, Lisa Sergi Trager

(MMEN) Shares: 28,775,175

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