The MedMen Sparks cannabis growing facility will now be growing under a new company: LitHouse.
“Licensed operations at the facilities will be carried on under management agreements with subsidiaries of LitHouse, which management agreements include purchase options for nominal consideration, subject to regulatory approval,” MedMen representatives announced in a press release last week.
MedMen opened its Sparks growing facility in 2018.
Tom Lynch, MedMen CEO, said, “The leaders of LitHouse Farms, Kris and Al Harris, are pioneers in craft mixed‐light cannabis cultivation. We believe they have a skill set that will enable them to capture the best elements of sun‐grown terpenes and mixed‐light energy efficiency, and we expect that they will be able to deliver a product with the look and potency of indoor. We and the current employees at our DHS and Sparks facilities are thrilled to partner with true cultivation experts.”
Foundry Works, LitHouse’s parent company, signed a sublease agreement worth approximately $2.4 million per year in its first year and going up to about $3.4 million per year in its sixth year.
MedMen and Foundry Works also announced a merchandising agreement. Foundry Works is expected to feature LitHouse Farms, Sherbinksi’s, Sonder and other future Foundry Works brands.
The two companies also agreed that Foundry Works will supply the product for the Company’s private label MedMen Red in both California and Nevada.