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MedMen Completes Sale of Two Properties to Treehouse REIT

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Mar. 14 2019, Published 2:32 p.m. ET

The announcement

Today, MedMen Enterprises (MMEN)(MMNFF) completed the sale of two of its properties to Treehouse Real Estate Investment Trust. These properties will be leased back to MedMen.

The first property is a retail storefront with an area of 10,417 square feet located close to the Las Vegas Strip in Nevada. The store, which is scheduled to open later this year, will be MedMen’s largest store to date. The second property is a cultivation, manufacturing, and production facility in Desert Hot Springs, California, which spans ~45,000 square feet. The facility has already received a certificate of occupancy and is slated to start production later this year.

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The sale generated gross proceeds of ~33.5 million while net proceeds, after the repayment of debt, stood at ~30.6 million. MedMen’s CEO and co-founder, Adam Bierman, stated, “This is our second transaction with Treehouse and we’ve now freed up nearly $49 million to invest directly into our growth initiatives.”

Stock performance

The announcement appears to have led to a rise in MedMen’s stock price. As of 1:50 PM ET today, the company was trading at 1.4% higher than yesterday’s closing price. However, the stock has fallen 5.5% year-to-date as of March 13. Peers, iAnthus Capital Holdings (IAN)(ITHUF), Trulieve Cannabis (TRUL)(TCNNF), and Green Organic Dutchman Holdings (TGOD)(TGODF) have returned 26.4%, 48.3%, and 76.8%, respectively. The ETFMG Alternative Harvest ETF (MJ) has risen 48.0%.

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