In connection with the execution of our acquisition strategy and strategic transactions, the Company has incurred restructuring and exit costs associated with the integration efforts of these transactions. In connection with these efforts, the Company incurred $34,283, $15,581 and $9,245 of restructuring costs for the fiscal years ended May 31, 2025, 2024 and 2023, respectively. All restructuring plans are approved at the executive level, and their associated expenses are recognized in the period in which the plan is committed. 

Within the Cannabis segment, our restructuring costs predominantly related to the HEXO acquisition, which were completed within 24 months from the acquisition in June 2023. In the fiscal year ended  May 31, 2025, we recognized $10,404 of expenses related to employee termination severance and benefits and other costs related to the conversion of the HEXO Quebec cultivation facility from cannabis to produce, the optimization of our Redecan facilities, and $987 of restructuring charges related to the remaining costs of exiting the Truss Beverage Co. (“Truss”) facility following its sale to a third party in the fiscal year ended  May 31, 2024. Additionally, the Company recognized $1,133 of costs associated with the winding down of our Avanti facility, which was exited and sold during the fiscal year ended May 31, 2025. The Company also recognized $2,054 of exit cost in connection with the termination of its contract with its distribution partner in the Quebec adult-use cannabis market and the insourcing of the function. Lastly, the Company recognized $786 of restructuring charges related to our decision to exit the New Zealand medical cannabis market announced during the fiscal year ended  May 31, 2025.

Within the Beverage segment during the fiscal year ended May 31 2025, the Company recognized $1,623 of expenses related to employee termination severance and benefits and $4,209 of costs associated with the consolidation of production sites through the integration of the Craft Acquisition I and the Craft Acquisition II. Additionally, the Company recognized $8,500 of restructuring charges related to the closure of Hop Valley which was accrued, but not yet paid. Lastly, the Company recognized $1,550 of restructuring charges related to terminating a legacy storage agreement from Craft Acquisition I. 

Within the Distribution segment during the fiscal year ended May 31 2025, the Company recognized $510 of restructuring charges related to the divestiture of its retail pharmacy location in Argentina. 

Lastly, for the fiscal year ended May 31, 2025, the Company recognized $2,527 of costs associated with the investment held in Superhero Acquisition Corp. as a result of MedMen’s ongoing restructuring and liquidation undertakings.