Predict your next investment

Private Equity
serruyaprivateequity.com

See what CB Insights has to offer

Investments

22

Portfolio Exits

8

Partners & Customers

1

About Serruya Private Equity

Serruya Private Equity (SPE) is a family-managed venture group that oversees the investment activities of the Serruya family. The Serruya brothers made their name by building a frozen yogurt empire, including Yogen Fruz.

Serruya Private Equity Headquarter Location

210 Shields Court

Markham, Ontario, L3R 8V2,

Canada

Predict your next investment

The CB Insights tech market intelligence platform analyzes millions of data points on venture capital, startups, patents , partnerships and news mentions to help you see tomorrow's opportunities, today.

Latest Serruya Private Equity News

Ascend Wellness Files Lawsuit Against MedMen For New York Deal

Jan 14, 2022

Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) is ramping up its efforts to get MedMen (OTC: MMNFF) to complete the deal that the two companies had arranged with regards to the New York properties. On Friday, Ascend filed a complaint in the Commercial Division of the Supreme Court of the State of New York in New York County against MedMen NY, Inc. and MM Enterprises USA, LLC in which Ascend is trying to get MedMen to go through with the deal that MedMen is trying to get out of. In addition, AWH has made an application for a preliminary injunction and temporary restraining order to maintain the status quo between the parties and to prevent any actions by the MedMen parties that would result in additional encumbrances on the equity or assets of MedMen NY, Inc. The Original Deal The two companies had agreed in February of 2021 Ascend would invest $73 million in order to receive controlling interest in 86.7% of the company’s New York properties. In addition, Ascend had an option to purchase the remaining amount in the future. MedMen was in pretty bad shape at the end of 2020. The company was heavily in debt and its liabilities exceeded its assets by 50%. MedMen continued to lose money quarter after quarter and its operational costs exceeded 100% of its gross revenues making profitability an unlikely hope rather than a reality. Additionally, MedMen’s revenue was dropping and its losses increased quarter over quarter. MedMen spent much of 2020 attempting to restructure, sell its assets and renegotiate its many obligations. The company was also facing issues with its founders and a lawsuit by the company’s former Chief Financial Officer James Patterson, which MedMen won. Ascend stepped in and gave MedMen some much-needed cash, including an upfront $4 million cash infusion in December 2020 in connection with the execution of a letter of intent between the parties and a further $4.46 million to cover MedMen’s working capital needs and Utica facility site improvements and expansion during 2021. NY Approval The deal though was contingent upon approval by the state of New York. MedMen submitted an application to the New York regulators as of March 11, 2021, for approval of the sale of MedMen NY to Ascend. That application recited that MedMen needed an immediate cash infusion from Ascend to continue its operations. The process hit a snag when halfway through 2021, the state transferred oversight of the cannabis program from the Department of Health to the newly created Office of Cannabis Management (OCM). Ascend claims that MedMen did not pursue the state’s approval causing Ascend to step in and push the process along. Finally, the state gave its approval on December 16. However, the use of the word “conditionally” in the approval caused MedMen to claim that the approval wasn’t final and so they could terminate the deal. According to the complaint, Ascend went back to the OCM and asked for clarification. The OCM stated that its approval was in fact final. Still, MedMen insisted it wasn’t and finally on December 29, the OCM contacted MedMen to say it was indeed final. The deal stated that MedMen had to close within five days of receiving approval from the state of New York. Still, MedMen insists it didn’t get approval by December 31 even though the emails exist that prove it did. If that wasn’t bad enough, Ascend claims that  MedMen NY paid an improper $500,000 dividend to its parent company, likely financed by advance dollars paid to MedMen by Ascend. Looming Debt Ascend also stated in its complaint that MedMen NY has approximately $100 million dollars of loans for which MedMen NY capital stock has been pledged as collateral in the event of default. “These loans were made to the MM Enterprises’ subsidiary, MM Can USA, Inc. by Hankey Capital, LLC. Once the original deal closed, Ascend would issue to MedMen NY  a promissory note in the amount of $28 million and that MedMen NY would subsequently assign the Closing Note to Hankey. Hankey would then release MedMen NY from any liability with the loan. The loans from Hankey are scheduled to come due on January 31, 2022, and February 1, 2022. “In the event of default on the MM Can loan agreements, Hankey is permitted to foreclose on the pledged MedMen NY ownership interest and can sell the foreclosed upon interest at a public or private sale or retain the interest for its own account. In such event, an order specifically enforcing MedMen NY’s obligation to close the Transaction will be meaningless.” MedMen agreed to the Hankey loan in 2018. In other words, if MedMen defaults, then Hankey gets the stock and Ascend is left empty-handed. New MedMen In November, Michael Serruya was named Chairman and Interim CEO, effective immediately. Serruya succeeded outgoing Chairman and CEO Tom Lynch, who held the position since 2020 and oversaw the company’s operational turnaround. Serruya joined MedMen’s board in August 2021 as part of a $100 million investment in the company by Serruya Private Equity to expand its operations in key markets and identify and accelerate further growth opportunities across the United States. Some sources have speculated that Serruya believes the company sold the MedMen NY properties at a discount and that is the reason they want to terminate the deal. Essentially, the new management believes it could get more money for MedMen NY.

Serruya Private Equity Investments

22 Investments

Serruya Private Equity has made 22 investments. Their latest investment was in MedMen as part of their PIPE - II on August 8, 2021.

CBI Logo

Serruya Private Equity Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

8/17/2021

PIPE - II

MedMen

$100M

Yes

20

7/29/2019

Series A

Grenco Science

Yes

1

1/28/2019

Private Equity

Everbowl

$3M

Yes

2

11/1/2018

Private Equity - II

Subscribe to see more

$99M

Subscribe to see more

10

10/23/2018

Private Equity

Subscribe to see more

$99M

Subscribe to see more

10

Date

8/17/2021

7/29/2019

1/28/2019

11/1/2018

10/23/2018

Round

PIPE - II

Series A

Private Equity

Private Equity - II

Private Equity

Company

MedMen

Grenco Science

Everbowl

Subscribe to see more

Subscribe to see more

Amount

$100M

$3M

$99M

$99M

New?

Yes

Yes

Yes

Subscribe to see more

Subscribe to see more

Co-Investors

Sources

20

1

2

10

10

Serruya Private Equity Portfolio Exits

8 Portfolio Exits

Serruya Private Equity has 8 portfolio exits. Their latest portfolio exit was MedMen on August 18, 2021.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

8/18/2021

Corporate Majority - P2P

1

6/28/2021

Acquired

Subscribe to see more

$99M

Subscribe to see more

10

12/16/2020

Reverse Merger

Subscribe to see more

Subscribe to see more

10

12/10/2020

IPO

Subscribe to see more

$99M

Subscribe to see more

10

8/16/2019

Acquired

Subscribe to see more

Subscribe to see more

10

Date

8/18/2021

6/28/2021

12/16/2020

12/10/2020

8/16/2019

Exit

Corporate Majority - P2P

Acquired

Reverse Merger

IPO

Acquired

Companies

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Valuation

$99M

$99M

Acquirer

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Sources

1

10

10

10

10

Serruya Private Equity Acquisitions

5 Acquisitions

Serruya Private Equity acquired 5 companies. Their latest acquisition was Round Table Pizza on December 07, 2018.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

12/7/2018

$99M

Acq - Fin

1

11/29/2018

Debt

Subscribe to see more

$99M

$99M

Subscribe to see more

10

8/14/2015

Subscribe to see more

$99M

Subscribe to see more

10

5/13/2015

Debt

Subscribe to see more

$99M

$99M

Subscribe to see more

10

8/21/2013

Subscribe to see more

$99M

Subscribe to see more

10

Date

12/7/2018

11/29/2018

8/14/2015

5/13/2015

8/21/2013

Investment Stage

Debt

Debt

Companies

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Valuation

$99M

$99M

$99M

$99M

$99M

Total Funding

$99M

$99M

Note

Acq - Fin

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Sources

1

10

10

10

10

Serruya Private Equity Partners & Customers

1 Partners and customers

Serruya Private Equity has 1 strategic partners and customers. Serruya Private Equity recently partnered with Aleafia Health on November 11, 2018.

Date

Type

Business Partner

Country

News Snippet

Sources

11/21/2018

Partner

Canada

Aleafia and Serruya Private Equity finalizes JV and financing agreement

TORONTO , Nov. 21 , 2018 -- Aleafia Health Inc. , and Serruya Private Equity , have settled final forms of definitive joint venture and other agreements that will see the Parties launch a Canada-wide cannabis retail Joint Venture along with a domestic and international cannabis brands Joint-Venture .

2

Date

11/21/2018

Type

Partner

Business Partner

Country

Canada

News Snippet

Aleafia and Serruya Private Equity finalizes JV and financing agreement

TORONTO , Nov. 21 , 2018 -- Aleafia Health Inc. , and Serruya Private Equity , have settled final forms of definitive joint venture and other agreements that will see the Parties launch a Canada-wide cannabis retail Joint Venture along with a domestic and international cannabis brands Joint-Venture .

Sources

2

Serruya Private Equity Team

3 Team Members

Serruya Private Equity has 3 team members, including current Managing Director, Gurion De Zwirek.

Name

Work History

Title

Status

Gurion De Zwirek

Managing Director

Current

Simon Serruya

Managing Director

Current

Aaron Serruya

Managing Director

Current

Name

Gurion De Zwirek

Simon Serruya

Aaron Serruya

Work History

Title

Managing Director

Managing Director

Managing Director

Status

Current

Current

Current

Discover the right solution for your team

The CB Insights tech market intelligence platform analyzes millions of data points on vendors, products, partnerships, and patents to help your team find their next technology solution.

Request a demo

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.