MedMen is now the largest marijuana retailer in the United States
Stock in marijuana retailer and cultivator Medmen Enterprises Inc CNSX: MMEN rose on Wednesday despite a downward trend among the rest of its segment. The company called the Apple Store of weed benefited from the news of its $682 million deal to acquire the retailer and producer PharmaCann.
The deal establishes MedMen firmly as the largest marijuana company in the United States. It now holds cannabis business licenses in 12 U.S. states and operates 79 cannabis facilities. The deal was reportedly all-stock.
In a news release, MedMen CEO Adam Bierman called the deal “transformative” for the industry. He noted that it expands the company’s retail footprint into new U.S. markets and greatly increases their cultivation and production capability.
MedMen is renown for the look and feel of its retail outlets which appear modeled after the futuristic clean lines and white surfaces of Apple Stores. The company got its start with stores in Los Angeles. Before the acquisition, it operated 14 retail stores in California, Nevada, and New York, and held a license to open 30 more stores in Florida.
Last month, MedMen secured a deal with Canadian investors for $57 million in financing. The company is currently only listed on the Canadian Securities Exchange and says it will not attempt to file for U.S. stock listing until marijuana is legal on a federal level.
This morning, MedMen stock was up 21.45 percent at CAD$7.03. The rise comes after the company’s stock had essentially stalled through the summer. Investors were reportedly opposed to the company’s aggressive executive compensation plan.