MedMen has continued to establish itself as a major player within the cannabis industry this year and doesn’t appear to be slowing down anytime soon. This week, the company completed the largest cannabis acquisition to date by acquiring the medical marijuana chain PharmaCann in a $682 million all-stock deal.
“This is a transformative acquisition that will create the largest U.S. cannabis company in the world’s largest cannabis market,” MedMen CEO Adam Bierman said in a statement.
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MedMen, which is based in California, currently has 14 high-end stores in California, Nevada, and New York. This deal will nearly double MedMen’s footprint, helping them enter the Midwest market and significantly expand their hold on the East Coast. The acquisition of the Illinois-based PharmaCann, which operates 10 retail stores plus three cultivation and production facilities in multiple states, could also be interpreted as MedMen ensuring a share of the Midwest market ahead of Michigan voting on adult-use cannabis legalization this November.
“This would not have been possible even two years ago and is a testament to how far both the industry and these two companies have evolved,” Biernan added.
This move also signals a change from MedMen’s initial business strategy, which focused on establishing themselves in heavy-foot traffic locations in New York, Las Vegas, and Los Angeles (MedMen owns the only dispensary in Manhattan’s famed Fifth Avenue). The company believes they’ve accomplished that goal and so is growing appropriately.
“We get asked that question a lot,” Head of Communication Daniel Yi said. “Our plan was to establish ourselves and create a solid position in the three key areas. Now that we’ve accomplished that, it’s time to expand.”