The Company Adds Flagship Location in Southern California’s Third Largest City
LOS ANGELES–(BUSINESS WIRE)–MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced that it has signed a definitive agreement to acquire a 100% stake in MattnJeremy, Inc. LLC d/b/a One Love Beach Club (“One Love”). The acquisition further enhances MedMen’s industry-leading California footprint, adding a premier location strategically located between its Santa Ana and LAX locations. One Love is currently on a run-rate of approximately $6 million in unaudited gross revenue with an unaudited EBITDA margin of approximately 29%.1
“We’re excited to welcome Long Beach to the MedMen family and continue our growth in the most important cannabis market in the world,” said Adam Bierman, MedMen CEO.
One Love was established in 2009 and is located at 2767 E Broadway in Long Beach, a few blocks away from the beach between Downtown and Belmont Shore. Located 20 miles south of Los Angeles, Long Beach is Southern California’s third largest city, behind Los Angeles and San Diego, with just under a half-million residents. The coastal city offers oceanfront hotels, attractions, events, shopping, recreational activities, art and culture, restaurants and nightly entertainment. The Long Beach Convention & Visitors Bureau estimated that more than 7.9 million visitors came to the city in 2018 to attend its attractions and events.
“It has been an honor serving the Long Beach community over the past ten years,” said the Abrams Family, owner and operators of One Love. “We look forward to MedMen continuing to provide our community with high quality cannabis.”
As consideration for the transaction, the Company will pay $13 million, of which $10 million will be satisfied in Class B Subordinate Voting shares (“Shares”), $1 million in cash at closing and $2 million in deferred cash. The transaction is subject to regulatory approvals by local and state authorities and other customary closing conditions. The Company expects the transaction to close within 45 days.
1. Based on unaudited financials provided by One Love.
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.
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Source: MedMen Enterprises
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