November 15, 2018 MJ Shareholders
November 15th, 2018
Exclusive, News, Top Story
The recent elections brought the total number of states allowing some form of legalized cannabis to 33, with Michigan expanding its medical program to full adult use legalization and both Utah and Missouri voting for regulated medical programs. The legal U.S. cannabis market is steadily growing, making it the largest legal cannabis market in the world, with plenty of headroom for additional growth.
MedMen Enterprises (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM66N) is expanding accordingly. Already one of the largest legal cannabis operations in the country, MedMen is in the process of closing its acquisition of PharmaCann. Upon closing this and other pending deals MedMen will unquestionably be the largest U.S. cannabis company, with 69 retail stores and 17 cultivation and production facilities spread across 12 key states. Those 12 states are home to over 50% of the nation’s population.
Where is MedMen?
Let’s start with California, the largest and most important cannabis market in the US. MedMen blankets the trend-setting greater Los Angeles area with seven stores. It’s where the company began, and its success there allowed it to branch out into other key markets. MedMen recently announced a definitive agreement to buy its second retail store in Northern California, and the license in San Jose allows the company to also engage in cultivation, manufacturing, and distribution. MedMen intends to use the new location as the hub for further expansion in Northern California.
In general, MedMen’s strategy is to secure prime locations in vital markets for its modern and inviting retail stores. Starting in LA, Hollywood, and Venice Beach, the company now boasts prime locations on 5th Avenue in Manhattan and two (with a third coming soon) around Las Vegas. In Arizona, the company is focused on key retail locations in Scottsdale and Tempe. Its entry into the Illinois medical market is in the trendy and growing Oak Park suburb on Chicago’s West Side. MedMen has secured prime retail locations in the prime Florida markets of Fort Lauderdale, Miami Beach, West Palm Beach, St. Petersburg, and Key West. Its license in the state, one of only 14 granted there to this point, allows MedMen to open 30 or more medical dispensaries there.
The pending PharmaCann acquisition will greatly expand MedMen’s reach upon closing. PharmaCann holds licenses for retail and cultivation in Pennsylvania, Massachusetts, Ohio, Virginia, and Michigan. It currently operates four dispensaries and two production facilities in Illinois, along with four dispensaries and one production facility in New York, one dispensary in Massachusetts, and one dispensary in Maryland.
The Michigan licenses are even more intriguing now following the recent elections in which the state voted to legalize cannabis for adult-use. Having an established medical presence there, with both retail and production licenses, could give MedMen a head start in penetrating the significant recreational market opportunity offered by the new legalization.
Overall, MedMen is building what may be the broadest brand presence of any company, public or private, in the United States. That really is the game right now. With the variations in state regulations and the persistence of the federal ban on cannabis, most companies have been focused in localized markets. MedMen certainly started that way in Southern California as it built its brand, but its aggressive expansion and acquisition strategy has quickly expanded the company’s reach across the country. Keep an eye out for more developments as MedMen continues to execute.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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