Medmen Enterprises Inc has been running up the charts in recent weeks as pot stocks heat up across the board and once again light up the OTCBB.
On January 17 MedMen reported unaudited systemwide revenue for its fiscal 2019 second quarter ended December 29, 2018. Across the Company’s operations in California, Nevada, New York and Arizona, systemwide revenue was US$29.9 million (CA$39.7 million). This represents a 40% quarter-over-quarter increase over its fiscal 2019 first quarter ended September 30, 2018. Systemwide revenue, pro forma for pending acquisitions that have not yet closed, was US$49.5 million (CA$65.7 million) for the quarter. For the second quarter, gross margin across its retail operations was 54%1, compared to 45% in the previous quarter. The Company is expected to post its fiscal 2019 second quarter results in February.
Medmen Enterprises Inc (CSE: MMEN) (OTCQB: MMNFF) is a leading cannabis company in the U.S. with assets and operations across the country. MedMen brings expertise and capital to the cannabis industry. The Company operates facilities under the MedMen brand name in California, Nevada and New York. MedMen is headquartered in Culver City, California, in a 12,000-square-foot, state-of-the-art office complex that was designed and executed by MedMen’s own facilities team, showcasing the company’s design and construction capabilities.
MedMen Enterprises employs more than 800 people across the United States. The predecessor to MedMen Enterprises was founded in 2010 by Adam Bierman and Andrew Modlin, two visionary entrepreneurs who saw not just a tremendous business opportunity in the growing legalization of marijuana, but a chance to re-define our society’s relationship with cannabis. MedMen supports sensible, clear and just drug laws. The Company is the single largest financial supporter of progressive marijuana laws at the local, state and federal levels, giving directly to pro-legalization groups, industry organizations and political candidates.
In October of last year MedMen announced an LOI to acquire PharmaCann in an all-stock transaction valued at $682 million. The deal is considered to be the biggest M&A deal to date within the legal marijuana industry and it will make Medmen the “largest U.S. cannabis company in the world’s largest cannabis market.”
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The resulting pro-forma company (including pending acquisitions by MedMen) is anticipated to have a portfolio of cannabis licenses across the U.S. that will permit the combined company to operate 76 retail stores and 16 cultivation and production facilities. The combined company will operate in 12 states, which comprise a total estimated addressable market, as of 2030, of approximately $40 billion according to Cowen Group. Through the Transaction, MedMen is anticipated to add licenses in Illinois, New York, Pennsylvania, Maryland, Massachusetts, Ohio, Virginia and Michigan.
MedMen has significant expansion plans that includes 16 new locations slated to open during calendar year 2019, including 12 locations in Florida, where the Company is licensed for up to 30 locations. The Company is set to open four retail stores in Florida in the next 90 days, which include locations in Miami Beach, Orlando, West Palm Beach and Key West.
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Currently trading at a $284 million market valuation Medmen has $63 million in the treasury, significant debt on the books and fast growing revenues reporting US$29.9 million (CA$39.7 million) in sales for Q2 2019. Medmen is one exciting Company and one of the best positioned cannabis enterprises in the country with a portfolio of cannabis licenses across the U.S. that will permit the combined company to operate 76 retail stores and 16 cultivation and production facilities with the PharmaCann acquisition. There is currently huge demand for Medmen and the next few weeks should be very exciting. We will be updating on Medmen when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Medmen.
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Disclosure: we hold no position in Medmen either long or short and we have not been compensated for this article.