MedMen Enterprises Announces $682 Million Cannabis Acquisition

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MedMen Enterprises

MedMen Enterprises (CSE: MMEN) and U.S. based PharmaCann LLC announced today that they had signed an agreement in which MedMen will acquire PharmaCann through an all-stock transaction worth $682 million. The deal marks the largest acquisition in the U.S. cannabis-markets history.

The combined company will contain a portfolio of cannabis licenses in 12 states and let the company operate 79 cannabis facilities. Analysts predict that the combined addressable market, as of 2030, will be approximately $40 billion. Through the acquisition, MedMen will be acquiring licenses to operate in New York, Pennsylvania, Illinois, Maryland, Massachusetts, Ohio, Michigan, and Virginia.

This is a transformative acquisition that will create the largest U.S. cannabis company in the world’s largest cannabis market. The transaction adds tremendous scale to our vertically integrated business model by expanding our U.S. retail footprint across important growth markets while strengthening our cultivation and production capabilities,” said Adam Bierman, MedMen’s CEO and Co-founder. “With the revenue synergies that the deal is expected to produce, MedMen is well positioned to continue executing on our growth strategy.”

Founded in 2014, PharmaCann is one of the largest medical cannabis providers in the world, featuring ten retail stores in multiple states along with three production facilities. MedMen has 14 high-end marijuana dispensaries of its own, with many stores positioned on some of the world’s most illuminated shopping streets. Locations include Venice Beach’s Abbot Kinney Boulevard, New York’s Fifth Avenue, and the Las Vegas Strip, according to Business Insider.

This would not have been possible ever two years ago and is a testament to how far both the industry and these two companies have evolved,” added Bierman. “PharmaCann’s leadership has built a world-class organization, and we are excited about the value this transaction is creating for shareholders.’’

Pending acquisitions and regulatory approval, the two companies combined will soon own licenses for 66 retail stores and 13 separate production and cultivation facilities. This move, besides expanding their retail presence, will see their total production capacity grow to over 800,000 square feet of growing space.

The transaction details will feature $682 million worth of the Company’s Class B Subordinate Voting Shares. Under the agreement, PharmaCann shareholders will still retain around 25 ownership over the firm upon the conclusion of the deal and will be subject to lock-up contracts for a period of up to 12 months. At the moment, the transaction is still awaiting regulatory approvals by local and state authorities in each of the markets where PharmaCann operates. However, experts remain positive that the deal will go through relatively quickly.

Company Profile MedMen Enterprises

MedMen Enterprises is a leading cannabis company in the U.S. with assets and operations across the country. Based in Los Angeles, MedMen brings expertise and capital to the cannabis industry and is one of the nation’s largest financial supporters of progressive marijuana laws. – MedMen

Company Profile PharmaCann LLC

PharmaCann LLC, one of the nation’s largest medical cannabis providers, cultivates, processes and dispenses safe, independently tested cannabis products to improve people’s lives. PharmaCann’s dispensaries, called Verilife, and production facilities, called Veriplant, are operating in multiple states including Illinois, Maryland, Massachusetts and New York, with other locations in development including Michigan, Ohio, Pennsylvania and Virginia. By elevating cannabinoid-based products, PharmaCann empowers people with more options for feeling and living better. – PharmaCann

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