Two of the largest cannabis companies in the world are joining forces to form a first of its kind venture. On March 19, 2018, Cronos Group Inc. (CRON) and MM Enterprises USA, LLC announced that they have entered into an agreement to form a cross-border joint venture.
MM Enterprises USA, LLC (MedMen) is a cannabis company with 18 production facilities operating in three US states and owns the largest cannabis dispensary chain in California. Similarly, Cronos Group is a licensed Canadian cannabis producer and distributor with business interests in Germany, Israel, and Australia. Domestically, Cronos owns two cannabis production facilities: Peace Naturals Project Inc. and Original BC Ltd. Most recently, Cronos became the first pure play cannabis company to become listed on the NASDAQ exchange.
The joint venture will be called MedMen Canada Inc. (MedMen Canada). Focusing on the development of branded products and dispensaries, the 50/50 joint venture will leverage Cronos’ access and reach in the Canadian market along with MedMen’s brand recognition and expertise in the retail cannabis experience.
To that end, MedMen Canada will utilize Cronos’ cannabis production facilities, totaling 350,000 square feet, as well as any future expansions that the company may have. MedMen Canada will only operate in areas where cannabis is federally legal and in compliance with any applicable regulations.
“MedMen Canada will give us entry into an important emerging market for adult use and broaden our exposure worldwide,” said MedMen CEO and Co-founder Adam Bierman in a statement. “We always take a very disciplined and focused approach to our growth, and it was important that we find the right partner for our expansion into Canada. Cronos has been a leader in the Canadian medical cannabis space, and their international track record makes them the perfect partner. They have the right infrastructure and expertise to successfully execute this venture.”
MedMen is also preparing to become a public company in the Canadian market. The company said it hopes to accomplish this sometime in the second quarter of this year.
On May 21, 2018, Green Market Report will work with MedMen as a media partner during the 2nd Annual Institutional Capital & Cannabis Conference (West) in Los Angeles, California; with GMR’s very own Debra Borchardt leading the panel “Crystal Balling The Future of Cannabis.”