Captor Capital Sells Orange County Retail Location to MedMen
MedMen Currently Manages the Santa Ana, California Store
TORONTO, Nov. 16, 2018 (GLOBE NEWSWIRE) — Captor Capital Corp. (“Captor” or the “Company”) (CSE:CPTR; FRANKFURT:NMV; USOTC:NWURF) has signed a definitive agreement (“the Agreement”) to sell the retail operations and license for a dispensary location in Santa Ana, California, through an all-stock transaction with MedMen Enterprises Inc. (“MedMen”) (CSE: MMEN; OTCQX: MMNFF; FSE: A2JM6N) valued at approximately US$16 million. The store is currently MedMen branded and managed.
“Through the sale of this dispensary we have achieved a strong return on our original investment for our shareholders,” said Captor Capital CEO, John Zorbas. “With the completion of this divestment, Captor will continue upon our strategy of owning and developing a new set of self-operated retail store brands to support our cultivation, manufacturing, and distribution operations.”
Upon closing, MedMen will issue approximately 3,740,228 Class B Subordinate Voting shares (the “Shares”) to Captor Capital. At current market price, the Agreement transaction is valued at US$16,229,567. The final purchase price is subject to adjustment for accrued liabilities at the time of closing.
MedMen Chief Executive Officer Adam Bierman and President Andrew Modlin own a combined 2.8 percent of Captor Capital. As such, an independent committee of the Board reviewed and approved the transaction. Cormark Securities provided a fairness opinion to the Board of Directors of MedMen, stating that in its opinion, and based upon and subject to the assumptions, limitations, and qualifications set forth therein, the transaction is fair, from a financial point of view.
The Agreement is subject to regulatory approvals by various local and state authorities and other customary closing conditions. The Company expects the transaction to close within 60 days.
About Captor Capital
Captor Capital Corp. is a Canadian firm focused on the cannabis sector listed on the Canadian Securities Exchange, the OTC, and the Frankfurt Stock Exchange. A vertically integrated cannabis company, Captor provides recreational and medical marijuana based products to consumers via its leading brands and dispensary locations. The company follows a strategy of acquiring cash flowing established companies and organizations with growth potential that require capital to scale. Captor currently has a number of revenue generating cannabis investments including a wholly owned MedMen branded dispensary in West Hollywood, the CHAI dispensary in Santa Cruz and Higher Ground in Castroville, CA. The Company also owns Mellow Extracts, a highly regarded producer of cannabis extracts based in Costa Mesa, CA. Captor Capital is currently looking at additional revenue generating investments in the cannabis space and will be updating the market in due course.
Gavin Davidson, Communications
Captor Capital Corp.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains or refers to forward-looking information, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to availability of investment opportunities, economic circumstances, market fluctuations and uncertainties, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, and the other risks involved in the investment industry and junior capital markets. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.