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MedMen Reports Second Quarter Fiscal Year 2019 Financial Results



LOS ANGELES – (BUSINESS WIRE) – MedMen Enterprises Inc. ("MedMen" or the "Company") (CSE: MMEN) (OTCQX:
      MMNFF) (ESF: A2JM6N) today released its consolidated financial results
      for the second quarter of fiscal 2019. All financial information for the
      13-week period ended December 29, 2018 is reported in U.S. dollars,
      unless otherwise indicated.

Comment Management

"Our strong second quarter results support MedMen's commitment to drive
      strong retail and sales performance, while efficiently scaling the
      Company and executing on our growth strategy, "said Adam Bierman, MedMen
      chief executive officer and co-founder. "As we emphasized last quarter,
      we are in a new phase of growth, one focused on continuing to
      operateize our industry-leading retail footprint and increasing our
      profitability We are confident in the team we've built to drive ours
      success. "

After going public almost one year ago, MedMen has established a track
      record of growth and success. With approximately 7% market share in
      California, the largest cannabis market in the U.S., the Company is
      planning to open 16 new locations across the U.S. in calendar 2019. Of
      the 16 new locations, 12 will be based in Florida, where MedMen is
      licensed for up to 30 locations. Additionally, four retail sites in
      Florida is expected to open in the next 90 days in the following
      Locations: Key West, Orlando, West Palm Beach, and St. Petersburg.

Second Quarter 2019 Overview

Financial Results:

  • Systemwide sales revenue of $ 29.9 million, which represents 39.1%
            quarter-over-quarter increase over fiscal 2019 first quarter ended
            September 30, 2018.

  • Gross profit margin improved to 53% from 45% in the previous quarter due
            to unrealized gain on changes in fair value of biological assets.

  • Company's eight retail locations in California reported combined
            $ 23.7 million in revenue, at 28% quarter-over-quarter increase.

Corporate Developments:

  • Signed final agreement in December to acquire PharmaCann in an
            all-stock transaction. The transaction will double MedMen's geographic
            footprint to 12 states, which account for over 50% of the U.S.
            population

  • Expanded California footprint into Northern California through the
            Signing of definitive agreements for the acquisitions of a retail
            license in Emeryville and a microbusiness license for retail,
            Distribution, cultivation and manufacturing cannabis onsite in San
            Jose. The first transaction closed in Q2 2019 and the second
            transaction closed in Q3 2019.

  • Signed definitive agreement to acquire the retail operations and
            license for a store in Santa Ana, California, through an all-stock
            transaction with Captor Capital Corp. This location was already
            operating under the MedMen brand through a management contract.
            Transaction closed in Q3 2019.

  • Closed on acquisition of Omaha Management Services, LLC, which owns
            Monarch, a Arizona-based vertical-integrated medical license holder
            with a flagship retail location in Scottsdale, plus cultivation and
            processing operations.

Brand Strategy:

  • Launched to a comprehensive suite of new cannabis products under the
            brand [statemade], which are currently being sold in MedMen's Nevada
            stores.

  • Announced the completion of investment in California-based flower
            brand Old Pal, which provides every day, high-quality cannabis flower
            for customers.

People:

  • Appointed Michael Kramer as chief financial officer. Mr. Kramer offers
            three decades of retail experience and you have excelled in both
            operational and financial roles, including the CFO of high-profile
            retailers such as Apple Retail Inc., Forever 21, and Abercrombie &
            Fitch.

  • Appointed Ben Cook as chief operating officer. Mr. Cook has extensive
            experience leading omnichannel distribution, global market expansion
            and supply chain optimization. His experience executing complex
            strategies for global, high-growth companies, including Apple, Sam's
            Club, and Target is invaluable to MedMen's growing multi-state
            operations and expansion plans.

Capital Markets and Financing Activities:

  • Announced relationship with newly formed Treehouse Real Estate
            Investment Trust ("Treehouse"), a cannabis-focused REIT that has now
            raised $ 133 million to acquire properties from MedMen and another
            cannabis real estate.

  • Closed to $ 77 million senior secured term loan with funds managed by
            Hankey Capital and with an affiliate of Stable Road Capital.

  • Closed, on December 5, at $ 56 million bought deal equity financing,
            issuing 13,640,000 units at a price per unit of $ 4.11, with each unit
            being comprised of one Class B subordinate voting share and one Class
            B subordinate voting share purchase warrant. The exercise price of
            Such warrants are US $ 5.16 per share and they are exercisable for a term
            expiring on September 27, 2021.

  • Uplisted to the OTCQX® Best Market by OTC Markets Group under the
            ticker symbol "MMNFF" on October 24.

Subsequent Events

Corporate Developments:

  • Closed acquisition of Seven Point, a licensed medical cannabis
            dispensary located in Oak Park, Illinois.

  • Closed acquisition of Kannaboost Technology Inc. and CSI Solutions
            LLC, collectively referred to as "Level Up," in cash and stock
            transaction valued at $ 33 million on February 12, 2019. Level Up holds
            licenses for two vertically-integrated operations in Arizona,
            including retail locations in Scottsdale and Tempe and 25,000 square meters
            feet of cultivation and production capacity in Tempe and Phoenix. The
            Company also received a 40% stake in top-selling brand K.I.N.D.
            Concentrates, which is currently distributed in over 90% of the
            dispensaries in Arizona.

Capital Markets and Financing Activities:

  • Completed the sale of three properties to Treehouse for net proceeds
            of approximately $ 18.4 million, after repayment of debt.

Second Quarter Fiscal Year 2019 Review

In an effort to increase transparency, provide a better understanding of
      MedMen's business, and ensure sales comparability between years, the
      Company is basing accounting on the 4-5-4 calendar structure.
      Additionally, the Company is now breaking out performance in the MD & A by
      retail, cultivation and manufacturing, corporate SG & A and pre-opening
      expenses

For the second quarter of fiscal 2019, systemwide revenue was $ 29.9
      million This represents 39.1% quarter-over-quarter increase over the
      first quarter of fiscal 2019 ended September 30, 2018. Systemwide
      revenue, pro forma to include pending acquisitions that have not yet
      closed, would have been $ 49.5 million for the quarter.

Retail: Systemwide retail revenue for the quarter
      It is based on 16 retail stores that were operational at the end of the
      quarter This includes the MedMen Paradise location near McCarran
      International Airport in Las Vegas, which opened in October, and the
      MedMen Scottsdale location in Arizona, which began to be included in
      MedMen's results in December following the closing of the Monarch
      acquisition

Strong systemwide retail revenue for the quarter is primarily
      attributable to MedMen's stores in Southern California's recreational
      market In California, the Company's eight retail locations reported a
      combined $ 23.7 million in revenue, which represents 28%
      quarter-over-quarter increase.

Cultivation and Manufacturing: For the second quarter of
      fiscal 2019, the Company reported a $ 4.9 million EBITDA loss for
      cultivation and manufacturing, of which approximately $ 4 million is
      related to costs associated with the Company's first full-scale factory,
      Project Mustang in Nevada, which you have already started producing [statemade] products

Corporate SG & A: During the second quarter, the Company
      continued to make significant investments in building the corporate
      infrastructure and team required to execute its strategy for long-term
      growth. Corporate SG & A includes corporate infrastructure and growth
      initiatives such as corporate payroll, sales and marketing, technology,
      among other things. Of the total $ 40.9 million corporate SG & A expenses,
      $ 14.4 million was a corporate payroll, which included the buildout of
      several teams within the Company including finance and accounting,
      digital, business intelligence and marketing. SG & A expenses as well
      It included $ 8.6 million in marketing and branding compared to $ 4.8
      million in the first quarter of 2019.

Pre-Opening Expenses: The Company incurred $ 3.0 million of
      pre-opening expenses in the second fiscal quarter of 2019, primarily
      driven by rent expenses of retail stores, cultivation / manufacturing
      Sites and facilities that are not yet operational.

Gross profit for the second quarter, before biological asset adjustment,
      It was $ 13.3 million, compared to $ 0.5 million in the second fiscal
      quarter of last year. For the second quarter, gross profit margin after
      Biological asset adjustment was 53%, compared to 45% in the previous
      quarter

For the second quarter 2019, the Company reported a total net loss of
      $ 64.6 million compared to a net loss of $ 66.5 million for the first
      quarter Net loss per share attributable to the Company in the second
      quarter was $ 0.25 versus a net loss of $ 0.27 for the first quarter.

ADDITIONAL INFORMATION

Additional information related to the Company's second quarter 2019
      results is available in the Company's Interim Financial Statements and
      Related Management Discussion & Analysis ("MD & A") filed on SEDAR at www.sedar.com.

MedMen refers to certain non-IFRS financial measures such as annualized
      Rooms for square foot, Earnings Before Interest, Taxes, Depreciation and
      Amortization (EBITDA), Four Wall EBITDA, and adjusted EBITDA (earnings
      defined as earnings before interest, taxes, depreciation, amortization,
      less certain non-cash equity compensation expense, including one-time
      transaction fees and all other non-cash items). These measures do not
      have any standardized meaning prescribed by IFRS and may not be
      comparable to similar measures presented by other issuers.

Please see the supplemental information (unaudited) regarding non-IFRS
      Financial measures at the end of this press release and the MD & A for
      more detailed information regarding non-IFRS financial measures.

CONFERENCE CALL AND WEBCAST:

MedMen Enterprises will host a conference call and audio webcast with
      Chief Executive Officer and Co-Founder Adam Bierman and Chief Financial
      Officer Michael Kramer today at 5:00 p.m. Eastern to discuss the financial
      results in more detail.

Webcast Information:

A live audio webcast of the call will be available on the Events and
      Presentations section of MedMen's website at: https://investors.medmen.com/events-and-presentations/default.aspx.

Calling Information:

Toll Free Dial-In Number: (844) 559-7829
International Dial-In
      Number: (647) 689-5387
Conference ID: 9283806

ABOUT MEDMEN:

MedMen is a cannabis retailer with operations across the U.S. and
      flagship stores in Los Angeles, Las Vegas and New York. MedMen's mission
      is to provide an unparalleled experience that invites the world to
      Discover the remarkable benefits of cannabis because a world where
      cannabis is legal and regulated is a safer, healthier and happier world.

Learn more at www.medmen.com

California Market Share by Revenue

For the 13 weeks ended December 29, 2018, the State of California
      collected $ 50.8 million in excise taxes at a rate of 15%, which equates
      to approximately $ 338.7 million in retail sales according to the
      California Department of Tax and Fee Administration (see http://cdtfa.ca.gov/news/19-02.htm).
      The Company's California stores reported $ 23.7 million in revenue over
      the same period, which equates to an approximate 7% market share.

Cautionary Note Regarding Forward-Looking Information and Statements

This press release contains certain "forward-looking information" inside
      the meaning of applicable Canadian securities legislation and may also
      contain statements that may constitute "forward-looking statements"
      within the meaning of the safe harbor provisions of the United States
      Private Securities Litigation Reform Act of 1995. Such forward-looking
      information and forward-looking statements are not representative of
      historical facts or information or current condition, but instead
      Represent only MedMen's beliefs about future events, plans or
      Objectives, many of which, by their nature, are inherently uncertain and
      outside of MedMen's control. Generally, such forward-looking information
      or forward-looking statements can be identified by the use of
      forward-looking terminology such as "plans", "expects" or "does not
      expect "," is expected "," budget "," scheduled "," estimates "," forecasts ",
      "Intends", "anticipates" or "does not anticipate", or "believe", or
      Variations of such words and phrases or may contain statements that
      certain actions, events or results "may", "could", "would", "might" or
      "Will be taken", "will continue", "will occur" or "will be achieved".
      The contained forward-looking information and forward-looking statements
      Herein may include, but are not limited to, information about the
      proposed acquisition of PharmaCann LLC (the "PharmaCann Acquisition"),
      expectations regarding whether the PharmaCann Acquisition will be
      consummated, including whether the conditions of the consummation of the
      PharmaCann Acquisition will be satisfied and whether the PharmaCann
      Acquisition will be completed on the current terms, the timing for
      completing the PharmaCann Acquisition, expectations for the effects of
      the PharmaCann Acquisition (including on the Company's footprint and
      asset base) on the ability of the Company to successfully achieve
      business objectives, expectations regarding the number and location of
      Additional stores to be opened by the Company in the next 90 days and
      during calendar 2019 and expectations for other economic, business,
      and / or competitive factors.

By identifying such information and statements in this way, MedMen is
      alerting the reader that such information and statements are subject to
      known and unknown risks, uncertainties and other factors that may cause
      the current results, level of activity, performance or achievements of
      MedMen to be materially different from those expressed or implied by
      such information and statements. In addition, in connection with the
      forward-looking information and forward-looking statements contained in
      this press release, MedMen has made certain assumptions. Among the key
      Factors that could cause actual results to differ materially from those
      projected in the forward-looking information and statements are the
      following: the inability to consummate the PharmaCann Acquisition; the
      failure to obtain regulatory approval approvals and third party
      consents and the failure to satisfy other conditions to the consummation
      of the PharmaCann Acquisition, which could impact closing or closing on
      the proposed terms and schedule; the potential impact of the
      announcement or consummation of the PharmaCann Acquisition on
      relationships, including with regulatory bodies, employees, suppliers,
      customers and competitors; changes in general economic, business and
      political conditions, including changes in the financial markets;
      changes in applicable laws; compliance with extensive government
      regulation; and the diversion of management time on the PharmaCann
      Acquisition. Should one or more of these risks, uncertainties or other
      Factors materialize, or should suppositions underlying the
      forward-looking information or statements prove incorrect, current
      The results may vary materially from those described herein as intended,
      planned, anticipated, believed, estimated or expected.

Although MedMen believes that the assumptions and factors used in
      Preparing, and the expectations contained in, the forward-looking
      information and statements are reasonable, undue reliance should not be
      placed on such information and statements, and no assurance or guarantee
      can be given that such forward-looking information and statements will
      prove to be accurate, the current results and future events could differ
      materially from those anticipated in such information and statements.
      The contained forward-looking information and forward-looking statements
      In this press release are made as of the date of this press release, and
      MedMen does not undertake to update any forward-looking information
      and / or forward-looking statements that are contained or referenced
      herein, except in accordance with applicable securities laws. All
      subsequent written and oral forward-looking information and statements
      attributable to MedMen or persons acting on behalf of it expressly
      qualified in its entirety by this notice.

MEDMEN ENTERPRISES INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 29, 2018 AND JUNE 30, 2018
(Amounts Expressed in United States Dollars Unless Otherwise
          Stated)

December 29,
2018

June 30,

2018

ACTS

Current Assets:

Cash and Cash Equivalents

$

78,219,490

$

79,159,970

Restricted Cash

3,164,980

6,163,599

Accounts Receivable

534,283

318,159

Current Portion of Prepaid Rent – Related Party

1,922,038

1,898,863

Prepaid Expenses

16,044,104

9,387,047

Biological Assets

2,672,981

1,952,580

Inventory

13,133,638

6,248,754

Other Current Assets

22,357,390

2,790,772

Due from Related Party

5,999,146 3,509,035

Total Current Assets

144,048,050

111,428,779

Prepaid Rent – Related Party, Net of Current Portion

1,681,474

2,652,149

Property and Equipment, Net

131,004,726

88,748,447

Intangible Assets, Net

96,339,102

48,792,757

Goodwill

84,818,127

18,165,161

Other Assets

8,561,933 12,403,049
TOTAL ASSETS $ 466,453,412 $ 282,190,342
LIABILITIES AND SHAREHOLDERS 'EQUITY
LIABILITIES:

Current Liabilities:

Accounts Payable and Accrued Liabilities

$

26,204,120

$

18,001,505

Other Current Liabilities

14,856,540

1,186,148

Derivative Liabilities

7,089,100

Current Portion of Finance Lease Liability

307,181

Current Portion of Notes Payable

33,487,387

52,353,625

Due to Related Party

5,798,301 9,858,445

Total Current Liabilities

87,742,629 81,399,723

Non-Current Liabilities:

Finance Lease Liability, Net of Current Portion

6,539,888

Other Non-Current Liabilities, Net of Current Portion

17,547,652

Payable Notes, Net of Current Portion

62,920,336 3,593,334

Total Non-Current Liabilities

87,007,876 3,593,334
TOTAL LIABILITIES 174,750,505 84,993,057
SHAREHOLDERS 'EQUITY:

Share capital

288,042,748

129,145,994

Additional Paid-In Capital

80,071,402

47,091,271

Accumulated Deficit

(97,810,015 ) (66,647,221 )

Total Equity Attributable to Shareholders of MedMen

270,304,135

109,590,044

Non-Controlling Interest

21,398,772 87,607,241
TOTAL SHAREHOLDERS 'EQUITY 291,702,907 197,197,285
TOTAL LIABILITIES AND SHAREHOLDERS 'EQUITY $ 466,453,412 $ 282,190,342
MEDMEN ENTERPRISES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
13 AND 26 WEEKS ENDED DECEMBER 29, 2018 AND THREE AND SIX MONTHS
          ENDED DECEMBER 31, 2017
(Amounts Expressed in United States Dollars Unless Otherwise
          Stated)
13 Weeks Ended Three Months Ended 26 Weeks Ended Six Months Ended
December 29, December 31, December 29, December 31,
2018 2017 2018 2017

Revenue

$

29,930,358

$

3,075,187

$

51,390,553

$

4,881,742

Cost of Goods Sold

16,629,783 2,564,202 26,439,116 3,768,988

Gross Profit Before Fair Value Adjustments

13,300,575

510,985

24,951,437

1,112,754

Changes in Fair Value of Inventory Sold

(244,343

)

(2,196,924

)

Unrealized Gain on Changes in Fair Value of

Biological Assets

2,878,271 2,882,915

Gross Profit

15,934,503 510,985 25,637,428 1,112,754

Expenses:

General and Administrative

65,696,688

9,531,722

131,436,138

14,668,415

Sales and Marketing

8,602,293

357,299

13,402,526

528,081

Depreciation and Amortization

3,423,677 708.783 5,873,997 1,387,001

Total Expenses

77,722,658 10,597,804 150,712,661 16,583,497

Loss from Operations

(61.788.155 ) (10,086,819 ) (125,075,233 ) (15,470,743 )

Other Expense (Income):

Interest Expense

2,886,674

669,130

5,296,706

1,017,717

Interest Income

(284,889

)

(284,889

)

Amortization of Debt Discount

1,384,186

1,442,944

Change in Fair Value of Derivative Liabilities

(5,389,178

)

(6,163,107

)

Unrealized Gain on Changes in Fair Value

of Investments

(1,194,000

)

(1,194,000

)

Other Expense

3,152,422 3,258,049

Total Other Expense (Income)

555,215 669,130 2,355,703 1,017,717

Loss Before Provision for Income Taxes

(62,343,370

)

(10,755,949

)

(127,430,936

)

(16,488,460

)

Provision for Income Taxes

2,226,849 275,878 3,635,507 275,878

Net Loss and Comprehensive Loss

(64,570,219

)

(11,031,827

)

(131,066,443

)

(16,764,338

)

Net Loss and Comprehensive Loss

Attributable to Non-Controlling Interest

45,885,355 99,903,648 423,804
Net Loss and Comprehensive Loss

Attributable to MedMen Enterprises Inc.

$ (18,684,864 ) $ (11,031,827 ) $ (31,162,795 ) $ (16,340,534 )
Loss Per Share – Basic and Diluted
Attributable to MedMen Enterprises

Shareholders

$ (0.25 ) $ (0.57 )
Weighted-Average Shares Outstanding –

Basic and Diluted

74,243,033 54,950,660
MEDMEN ENTERPRISES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 26 WEEKS ENDED DECEMBER 29, 2018 AND THREE MONTHS ENDED
          DECEMBER 31, 2017
(Amounts Expressed in United States Dollars Unless Otherwise
          Stated)
26 Weeks

Ended

Six Months Ended
December 29, December 31,
2018 2017

CASH FLOW FROM OPERATING ACTIVITIES:

Net Loss

$

(131,066,443

)

$

(16,764,338

)

Adjustments to Reconcile Net Loss to Net Cash Used in Operating
          Activities:

Unrealized Gain on Changes in Fair Value of Biological Assets

(2,882,915

)

Changes in Fair Value of Inventory Sold

2,196,924

Depreciation and Amortization

6,324,661

1,500,431

Amortization of Debt Discount and Loan Origination Fees

2,001,820

Loss on Sale of Property

2,626,216

Accretion of Deferred Gain on Sale of Property

(84,995

)

Unrealized Gain on Change in Fair Value of Investments

(1,194,000

)

Loss on Extinguishment of Debt

715,979

Share-Based Compensation

22,653,899

539,916

Shares Issued for Acquisition Costs

747,562

Change in Fair Value of Derivative Liabilities

(6,163,107

)

Changes in Operating Assets and Liabilities:

Accounts Receivable

(183,324

)

(323,290

)

Prepaid Rent – Related Party

947,500

1,100,000

Prepaid Expenses

(6,657,057

)

(2,150,754

)

Other Current Assets

(7,777,816

)

Biological Assets

(34,410

)

Inventory

(5,247,388

)

(8,224,108

)

Due from Related Party

(2,490,111

)

(5,618,504

)

Other Assets

3,841,116

(455,502

)

Accounts Payable and Accrued Liabilities

6,988,188

15,187,349

Other Current Liabilities

(6,204.608

)

(1,464,568

)

Due to Related Party

(4,060,144 ) (2,098,270 )
NET CASH USED IN OPERATING ACTIVITIES (125,002,453 ) (18,771,638 )

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of Property and Equipment

(55,261,730

)

(13,263,308

)

Investments

(8,304,833

)

Proceeds from Sale of Property

24,073,319

Purchase of Intangible Assets

(1,260

)

Purchase of Management Agreement

(2,000,000

)

Acquisition of Businesses, Net of Cash Acquired

(30,686,541

)

Restricted Cash

2,998,619 (472,136 )

NET CASH USED IN INVESTING ACTIVITIES (67,181,166 ) (15,736,704 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of MedMen Corp. Redeemable Shares for Cash

115,289,679

Exercise of Warrants for MedMen Corp. Redeemable Shares

8,521,268

Contributions from Members

21,904,035

Proceeds from Issuance of Notes Payable

93,943,539

Principal Repayments of Payable Notes

(24,739,101

)

(3,959,965

)

Principal Repayments of Capital Lease Liability

(42,775

)

Debt Issuance Costs

(2,019,472

)

Cash Received from Issuance of Class D Units

9,850,000

Contributions – Non-Controlling Interest

290,000 4,231,214

NET CASH PROVIDED BY FINANCING ACTIVITIES 191,243,139 32,025,284

NET DECREASE IN CASH AND CASH EQUIVALENTS (940,480 ) (2,483,058 )

Cash and Cash Equivalents, Beginning of Period

79,159,970 5,720,026

CASH AND CASH EQUIVALENTS, END OF PERIOD $ 78,219,490 $ 3,236,968

CASH PAID DURING PERIOD FOR:

Interest

$

3,732,632

$

762,657

OTHER NON-CASH INVESTING AND FINANCING ACTIVITIES:

Net Assets Acquired through Management Agreement

$

$

4,690,505

Derivative Liability Incurred on Issuance of Equity

$

13,252,207

$

Issuance of Subordinate Voting Shares for Other Assets

$

1,946,290

$

Issuance of MedMen Corp Redeemable Shares for Other Assets

$

343,678

$

Redemption of MedMen Corp. Redeemable Shares

$

17.994.369

$

Debt Discount Recognized Upon Issuance of Warrants

$

18.694,985

$

Debt Discount Recognized Upon Issuance of Subordinate Voting Shares

$

185,511

$

Conversion of Convertible Notes into Equity

$

3,802,381

$

Issuance of MedMen Corp. Redeemable Shares for Repayment of Notes
          Payable

$

6,759,125

$

Asset Acquired Under Sales-Leaseback (Finance Lease)

$

6,889,844

$

Issuance of Payable Note Related to Purchase of Management Agreement

$

$

2,000,000

Deferred Gain on Sales / Leaseback

$

5,666,274

$

Issuance of Note Payable Related to Purchase of Property and
          Equipment

$

$

2,025,000

MEDMEN ENTERPRISES INC.
NON-IFRS RECONCILIATION
13 AND 26 WEEKS ENDED DECEMBER 29, 2018 AND THREE AND SIX MONTHS
          ENDED DECEMBER 31, 2017
(Amounts Expressed in United States Dollars Unless Otherwise
          Stated)
13 Weeks Ended Three Months Ended 26 Weeks Ended Six Months Ended
December 29, December 31, December 29, December 31,
2018 2017 2018 2017
Net Loss (IFRS)

$

(64,570,219

)

$

(11,031,827

)

$

(131,066,443

)

$

(16,764,338

)

Add (Deduct) Impact of:

Transaction Costs

5,381,648

2,211,536

$

6,804.999

2,144,611

Share-Based Compensation

11,470,363

288,494

22,653,899

539,916

Other Non-Cash Operating Costs

(6,064,684 ) (4,785,050 )

Total Adjustments

10.787,327 2,500,030 24,673,848 2,684,527
Adjusted Net Loss (Non-IFRS) $ (53.782.892 ) $ (8,531,797 ) $ (106.392.595 ) $ (14,079,811 )
Net Loss (IFRS)

$

(64,570,219

)

$

(11,031,827

)

$

(131,066,443

)

$

(16,764,338

)

Add (Deduct) Impact of:

Net Interest and Other Financing Costs

2,601,785

669,130

5,011,817

1,017,717

Provision for Income Taxes

2,226,849

275,878

3,635,507

275,878

Amortization and Depreciation

5,046,897 708,783 7,767,605 1,577,283

Total Adjustments

9,875,531 1,653,791 16,414,929 2,870,878
EBITDA (Non-IFRS) $ (54,694,688 ) $ (9,378,036 ) $ (114,651,514 ) $ (13,893,460 )
EBITDA (Non-IFRS)

$

(54,694,688

)

$

(9,378,036

)

$

(114,651,514

)

$

(13,893,460

)

Add (Deduct) Impact of:

Transaction Costs

5,381,648

2,211,536

6,804,999

2,144,611

Share-Based Compensation

11,470,365

288,494

22,653,899

539,916

Other Non-Cash Operating Costs

(6,064,684 ) (4,785,050 )

Total Adjustments

10,787,329 2,500,030 24,673,848 2,684,527
Adjusted EBITDA (Non-IFRS) $ (43,907,359 ) $ (6,878,006 ) $ (89,977,666 ) $ (11,208,933 )

SOURCE: MedMen Enterprises


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