LOS ANGELES–(BUSINESS WIRE)–MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF), a premier U.S. cannabis retailer, today announced that LitHouse Farms, one of the most highly‐awarded cultivators in California, has agreed to manage cultivation and manufacturing at each of the two approximately 45,000 square foot, Dutch greenhouse, cultivation and production facilities that MedMen leases in Desert Hot Springs, California (“DHS”) and Sparks, Nevada (“Sparks”). LitHouse will expand its current California production, enter the Nevada market for the first time and produce flower for MedMen’s private label line MedMen Red. Licensed operations at the facilities will be carried on under management agreements with subsidiaries of LitHouse, which management agreements include purchase options for nominal consideration, subject to regulatory approval.
Tom Lynch, Chairman and CEO of MedMen, remarked, “The leaders of LitHouse Farms, Kris and Al Harris, are pioneers in craft mixed‐light cannabis cultivation. We believe they have a skill set that will enable them to capture the best elements of sun‐grown terpenes and mixed‐light energy efficiency and we expect that they will be able to deliver a product with the look and potency of indoor. We and the current employees at our DHS and Sparks facilities are thrilled to partner with true cultivation experts.”
Concurrently with the transaction, Foundry Works, Inc., the parent company of LitHouse Farms, has signed a sublease agreement for DHS worth approximately U.S.$3.2 million per year in its first year, ramping to approximately U.S.$4.6 million per year in its sixth year, subject to 3% annual escalators thereafter through March 2039. At Sparks, Foundry Works has signed a sublease agreement worth approximately U.S.$2.4 million per year in its first year, ramping to approximately $3.4 million per year in its sixth year, subject to 3% annual escalators thereafter through January 2039. In addition, MedMen and Foundry Works also announced a merchandising agreement covering California and Nevada reflective of MedMen’s retail focus in both states and the two companies’ shared brand vision. Subject to performing in the top half of SKUs sold at MedMen, Foundry Works will have the right to occupy shelf space in‐line with MedMen’s current top performing brands. It is expected that Foundry Works will use these rights to feature LitHouse Farms, Sherbinksi’s, Sonder and other future Foundry Works owned brands. MedMen and Foundry Works expect to release exclusive products while supporting these products with marketing and advertising content associated with the merchandising agreements. The two companies also have agreed that Foundry Works will supply the product for the Company’s private label MedMen Red product in California and Nevada.
MedMen is a premier American cannabis retailer with an operational footprint in California, Nevada, Illinois, Arizona, Massachusetts, and Florida. MedMen offers a robust selection of high‐quality products, including MedMen‐owned brands MedMen Red and LuxLyte through its premium retail stores, proprietary delivery service, as well as curbside and in‐store pickup. MedMen Buds, an industry‐first loyalty program, provides exclusive access to promotions, product drops and content. MedMen believes that a world where cannabis is legal and regulated is safer, healthier, and happier. Learn more about MedMen at www.medmen.com.
Cautionary Note Regarding Forward‐Looking Information and Statements:
This press release contains certain “forward‐looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward‐looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward‐looking information and forward‐looking statements are not representative of historical facts or information or current condition, but instead represent only MedMen’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of MedMen’s control. Generally, such forward‐looking information or forward‐looking statements can be identified by the use of forward‐looking terminology such as “will be”, “will enable”, “expect”, “look forward” and “resuming”. This forward‐looking information is based on certain assumptions made by management and other factors used by management in developing such information.
Forward‐looking information and statements are not based on historical facts but instead are based on assumptions, estimates, analysis and opinions of management of the Company at the time they were provided or made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances and are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the Forward‐Looking Statements in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees, and other persons authorized to speak on our behalf.
Although MedMen believes the assumptions and factors used in preparing, and the expectations contained in, the forward‐looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward‐looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Should assumptions underlying the forward‐looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. The forward‐looking information and forward‐looking statements contained in this press release are made as of the date of this press release, and MedMen does not undertake to update any forward‐looking information and/or forward‐looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
Forward‐looking statements contained in this news release are expressly qualified by this cautionary note.