MedMen is the best-known cannabis retailer in the United States
MedMen is the best-known cannabis retailer in the United States.
Yet, in what could be a warning for the American marijuana industry, it is racing to raise cash to cover its mounting losses.
Financial statements released in February showed that MedMen risked running out of money within months unless it raised more money. Last week, MedMen alleviated any immediate financial crisis by securing a $100 million credit line from a cannabis-focused investment company. The loan may ultimately be raised to $250 million if MedMen’s performance improves.
The terms of the financing are onerous — MedMen must repay it at 6 percent over Libor and issue warrants — but the fresh cash will buy the company time. Its shares, which had fallen almost 60 percent since October, have risen slightly since the announcement. At its current share prices, MedMen is worth about $1.6 billion, down from a high of roughly $3 billion last year.
To Read The Rest Of This Article On CNBC, Click Here