Cannabis companies are attracting some extremely large institutional as well as private investment funds. Recognizing the explosive growth potential that some of the more established marijuana companies have seen and are still capable of seeing as the industry still has room to mature, many investment firms are getting their hands into this potential money jar. Today, MedMen Enterprises Ince (CSE: MMEN) announced that they were receiving a $250 million dollar investment from Gotham Green Partners (GGB), one of the top private investors in the global cannabis industry.
MedMen’s team went on to suggest that they believe that this is the largest investment to date by any single investor in a publicly traded cannabis company that operates in the United States. While there are definitely investments that have surpassed this figure, such as the $4 billion investment Constellation Brands made into Canopy Growth Corp (TSE: WEED)(NYSE: CGC), many of these companies don’t operate mainly in the U.S.
“This strategic partnership with Gotham Green Partners represents another key milestone for MedMen and stems from our long-standing relationship with The Cronos Group and GGP’s brand portfolio,” said Adam Bierman, CEO of MedMen. “The growth capital will be used to operationalize the balance of our footprint and we look forward to creating further alignment with GGP and their global cannabis platform.”
Overall, the company plans to use these new funds to expand upon existing retail licenses with an emphasis on Florida, where MedMen has licenses to open up to 30 stores. Additionally, the funds would be used to help accelerate acquisitions, develop in-house branded products, continue existing research and development projects, as well as expand the company’s supply chain in the production and cultivation areas.
“We continue to be impressed with MedMen’s industry-leading retail execution and iconic branding. With MedMen’s fortified balance sheet, the Company’s future has never been brighter. We feel fortunate to have the opportunity to take such a significant stake in MedMen and begin to work actively with the management team and the board to help the Company achieve its goals,” added GGP managing member Jason Adler.
Overall, MedMen has been one of the cannabis industries top leader when it comes to their revenue figures, with their recent Q4 2018 financials putting them near the top of the totem pole when it comes to income as they reported $29.9 million in quarterly sales. MedMen also made news when it announced that it was buying PharmaCann for a massive $682 million, a deal which would expand their reach from only five to 12 states and adding half the U.S. population as potential buyers for their products. Some analysts look at MedMen as potentially doubling in market cap over the next 12 months.
In response to the news, MedMen Enterprises saw a modest gain in the markets as their share prices jumped just under 5 percent in today’s trading session. Ever since mid-November shares for MedMen have been hovering around the C$4 range. Back in October when cannabis stocks plunged, MedMen dropped from it’s high of C$9 down to where it is currently and hasn’t shown much sign of returning to normal. Even during the strong sector rally in January, share’s of MedMen haven’t responded.