MedMen Enterprises Inc. announced that its stock will begin trading today on the Canadian Securities Exchange under the ticker symbol “MMEN” at 11 a.m. eastern time. The listing is the result of a reverse takeover of a Candian public company by MedMen and as a result, the U.S.-based cannabis retailer will raise roughly C$143 million or $110 million by today’s exchange rates. This gives MedMen an enterprise valuation of C$2.14 billion or $1.65 billion.
“MedMen’s vision is simple but revolutionary: cannabis as a consumer product,” said MedMen Co-founder and CEO Adam Bierman. “For the better part of a decade, we have been singularly focused on that vision – creating the systems and infrastructure that raise the bar on product quality and safety and providing a retail shopping experience that is second to none. By going public, MedMen gives investors a ground-floor opportunity to participate in the enormous and untapped potential of the fastest growing industry in the United States.”
It’s a fairly frothy valuation for a company with only nine retail stores, including its flagship store on New York City’s Fifth Avenue, which opened last month. This location is rumored to be costing the company millions in rent, which is typical of Fifth Avenue real estate. In addition to the Manhattan location, MedMen is licensed to operate a total of four stores in New York State, all of which are currently operational. Looking ahead, MedMen recently signed a joint venture agreement with Cronos Group to explore opening MedMen branded and managed stores in Canada once adult-use is legalized. Still, there are other cannabis chains in Colorado with more retail stores not commanding this type of valuation.
MedMen stays focused in the main tourist locations of California, Nevada and New York. The company has over 800 employees and 18 licensed facilities in these three states.
“We are making marijuana mainstream by making it okay for soccer moms and middle-aged professionals to use cannabis products,” said MedMen Co-founder and President Andrew Modlin, the creative force behind MedMen and the first cannabis professional to win the prestigious American Marketing Association’s Emerging Leaders Award. “People are using it for ailments, for wellness or to just relax or socialize with friends. Medical marijuana is legal in 29 states, adult use is now legal in nine. Medical use is legal in Canada and adult use is expected to be legal by year’s end. We are marching steadily toward a future where buying and using cannabis products will be just as normal as buying wine or beer.”
Aside from the slick retail outlets, MedMen owns and operates two cultivation and production facilities, one in Nevada and the other in New York. According to a company statement, it is currently developing additional large-scale cultivation and production operations in California and New York and a genetics facility in Nevada, while also expanding the cultivation area of its existing Nevada facility. Management intends to establish a strong foothold in these states as they offer high-growth potential due to their market depth, supply-demand dynamics, and regulatory framework.
“Our listing on the CSE will give MedMen greater flexibility in accessing capital in the public equity markets to leverage our first-mover advantage and to build upon our track record of growth,” Bierman said. “At the same time, it will provide global investors an opportunity to invest in the preeminent cannabis company in the U.S. for the first time ever.”