Sweet green: Medmen scores $250M investment for cannabis retail buildout

The LA firm will use part of the money to open 30 stores in Florida

Medmen CEO Adam Bierman and Medmen’s Downtown LA shop
Medmen CEO Adam Bierman and Medmen’s Downtown LA shop

More green is pouring into the coffers of rapidly-growing cannabis operator MedMen Enterprises.

The Culver City-based company just got a $250 million investment from Gotham Green Partners, which MedMen intends to use to help fund its national retail expansion. The news was announced in a release, according to the Los Angeles Business Journal.

The big investment involves an initial $100 million loan secured by MedMen’s stock, which listed on the Canadian Securities Exchange in mid-2018.

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MedMen will use New York-based Gotham’s investment to fund its 30-store expansion in Florida, a buildout of technology infrastructure, and to integrate operations the company has recently acquired, including the PharmaCann firm in Illinois.

MedMen raised another $100 million for its push in January, when it spun off its real estate assets into Treehouse Real Estate Investment Trust, an entity created in partnership with Venice-based investment firm Stable Road Capital.

That arrangement includes a number of leaseback deals, a popular model to free up capital in the cannabis industry, where financing is difficult because of federal restrictions. The entities are private real estate investment vehicles, not actually publicly-traded REITs. Along with leaseback deals, many offer financing to cannabis companies to fund real estate acquisitions and buildouts.

A handful have cropped up lately to capitalize on the demand for real estate, and a lack of available financing within the cannabis space. Pelorus Equity Group’s $100 million fund and Inception Companies’ $50 million fund are among the larger funds in California. [LABJ]Dennis Lynch