The final closing price serves as a loss for MedMen, who originally agreed to sell the grow facility for $83 million in February.
Green Sentry Holdings, LLC acquired MedMen’s (OTC: MMNFF) Florida stores and a greenhouse for $63 million. The closing was funded with the proceeds of a non-brokered equity raise and a $30 million debt facility from a private lender, the company said.
The final closing price serves as a loss for MedMen, who originally agreed to sell the grow facility for $83 million. The cash deal includes all of MedMen’s Florida-based assets, including a medical marijuana treatment center license, 14 dispensaries and a 30,000 square foot cultivation and processing facility.
Green Sentry said its team has been renovating the Eustis greenhouse since March and that edibles production is expected to launch in the coming months. MedMen locations will all reopen under Green Sentry’s management and new pricing will be unveiled as well.
“As a team, we are beyond excited to re-enter the Florida market, where we have built a presence and a reputation for honoring the plant,” said CEO and founder Brady Cobb.”We have proven to the market previously that a Florida-focused company can produce the highest quality flower and concentrates, and now we are bringing our products to consumers via 14 of the best retail sites in Florida.”
Additionally, Green Sentry will launch Sunburn Cannabis in addition to the ongoing expansion of the company’s Florida footprint. The company said that Sunburn is a “Florida-focused brand living at the intersection of top-shelf flower and concentrates while embracing the state’s unique culture.” Green Sentry expects to launch the Sunburn Cannabis brand in the fourth quarter of this year.
The brand stems from the story of Cobb’s late father — Clyde Walton “Bill” Cobb — who was a pot smuggler for Pablo Escobar in Florida in the 1970s and 1980s. The company described his father’s story as “an authentic part of Florida’s cannabis history.”
Through osmosis, Cobb managed to build from his family’s know-how when navigating the legal space, eventually co-founding Florida cannabis operator Bluma Wellness before selling it to Chicago-based Cresco for $213 million in April. He is also an attorney, lobbyist, strategist and consultant based in South Florida who focuses his practice in the areas of regulated medical cannabis, federal and state government relations as well as regulatory matters.
“It’s humbling to see my executive and operational teams stay together to close this transaction and launch Sunburn Cannabis,” Cobb said. “I’m incredibly proud to launch Sunburn and share my family’s passion and knowledge for the plant with people in Florida. Sunburn is a brand for Floridians by Floridians.”
Emily Paxhia, managing partner of cannabis investment firm, Poseidon Asset Management, added, “We are excited about the growth prospects of the Florida market and we believe in backing strong teams. The Sunburn team has experience coupled with deep knowledge of the market.”
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