Culver City-based pot retailer MedMen Enterprises Inc. is receiving an additional $30 million in credit from marijuana industry investor Gotham Green Partners, a New York-based private equity firm.
The additional funds come on top of a $250 million credit line provided by Gotham and come as MedMen continues to pursue a rapid expansion strategy. The company said the additional credit will be used to fund more store openings — a key to growth.
In Wednesday’s announcement, MedMen said Gotham Green Partners would partner with Chicago-based investment firm Wicklow Capital Inc. for the $30 million.
MedMen is licensed for 86 retail stores, including several properties it’s acquiring through a $682 million stock deal for Chicago-based PharmaCann. The pending deal to buy PharmaCann should be completed by October.
MedMen said the credit line would be used to expand in strategic markets, such as Illinois where the company anticipates 10 stores after the state transitions from a medical to adult-use market in 2020.
Gotham, run by Jason Adler, former managing partner of Alphabet Ventures, has now funded $100 million of MedMen’s total $280 billion credit line.
In its latest quarter, MedMen reported losses of $63.1 million on revenue of $36.6 million. MedMen reported $23.7 million in cash on hand at the end of March.
Finance reporter Pat Maio can be reached at firstname.lastname@example.org or (323) 556-8329.