Some nicknames can be worn like a badge of honor. You can bet that U.S.-based MedMen Enterprises (NASDAQOTH:MMNFF) doesn’t mind being compared to Apple when people refer to it as “the Apple Store of Weed.”
The nickname isn’t all that much of a stretch. MedMen’s cannabis retail locations are upscale and well designed, just as Apple Stores are. And MedMen’s revenue per square foot in its California cannabis stores beats that of Apple Stores.
MedMen stock has more than doubled so far in 2018, performing better than several more well-known Canadian marijuana stocks. The company recently announced plans to buy PharmaCann for $682 million, making it the biggest acquisition ever for the U.S. cannabis industry. Is “the Apple Store of Weed” a buy with this latest deal…
A transformative deal
MedMen currently operates 14 retail cannabis stores in three states: California, Nevada, and New York. The company also recently bought assets from Treadwell Nursery in Florida, picking up a license to operate up to 30 retail locations for dispensing medical marijuana in the state. In addition, MedMen is acquiring retail cannabis operations in Illinois and Arizona.
But the purchase of PharmaCann will be MedMen’s biggest acquisition to date. PharmaCann ranks as one of the largest medical cannabis producers and dispensary operators in the U.S. It currently operates in Illinois, Maryland, Massachusetts, and New York. PharmaCann is also developing operations in Michigan, Ohio, Pennsylvania, and Virginia.
MedMen CEO and co-founder Adam Bierman referred to the deal as “a transformative acquisition that will create the largest U.S. cannabis company in the world’s largest cannabis market.” The combined company will have cannabis licenses in 12 states with the green light to operate up to 79 cannabis facilities — 66 retail locations and 13 cultivation/production facilities.
It will take 6 to 12 months for MedMen to close the MedCann acquisition, though. The company must obtain regulatory approvals from local and state authorities in the areas where MedCann operates and holds licenses. If for some reason these approvals aren’t received…
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