Another big move by California-based MedMen. The company announced it has acquired a Florida cannabis license worth $53 million. The June 6 agreement allows MedMen to take over Treadwell Nursery’s cultivation facility located on 5 acres in Eustis, Florida and the right to open 25 medical marijuana dispensaries in the State of Florida.
“For nearly a decade we have been positioning ourselves to capitalize on enormous market opportunities like this,” says MedMen Co-founder and CEO Adam Bierman said in a statement, adding:
This acquisition is right in line with our strategy of establishing a presence early on in high potential markets with limited licenses and large populations. Florida is the third most populous state in the country with a medical marijuana market estimated to reach $1 billion in annual sales by 2020. MedMen has built the best-in-class brand, and we continue to invest in premium assets that solidify our dominant position in the most important cannabis markets in the world.
The transaction is expected to close within 90 days and is subject to customary closing conditions, including receipt of state regulatory approvals. If certain regulatory approvals are not obtained, the Company and Treadwell Nursery will have the right to terminate the Agreement.
Related Story: MedMen Just Got Closer To Becoming ‘The Apple Store Of Weed’
Jeff Sharkey, founder of the Medical Marijuana Business Association of Florida, told The News Service of Florida that the deal “reflects the belief nationally and internationally that Florida is a very strong medical cannabis market, even though it is in its infant stages,” and that “Acquisition by these types of companies will bring a high level of professional expertise into the development of products and the ability to deliver high-quality medicine to patients.”
MedMen, which aims to be the “Apple Store of weed” recently announced plans to not only expand throughout the U.S., but to offer weed delivery.
The company went public on the Canada Securities Exchange on May 28, stating in a regulatory filing that it “plans to engage in delivery operations either through the development of its own delivery infrastructure and network or through the use of third-party services focused on the delivery and e-commerce market.”