MedMen stock has been finding it tough to hold any gains despite several positive news developments earlier this month. This is largely due to the broader weakness in the cannabis sector amidst growing regulatory and earnings concerns. Let's analyze MedMen Enterprises' (CSE:MMEN) (OTCQX:MMNFF) recent developments.
The marijuana sector may have experienced a bit of slump over the past few months, but the better-than-expected performances of many companies have lifted the mood somewhat.
Delivery Service in California
Last week, MedMen Enterprises launched its delivery service in California, which remains the most lucrative marijuana market in the United States. It is a landmark development and one that could propel the company into the big time in the years to come. In its announcement, MedMen stated that the market could be worth as much as $11 billion a year in sales once marijuana is completely legalized.
However, the most important takeaway from the announcement is that MedMen is going to launch a highly efficient and modern delivery system, that will have products being delivered to customers on the same day.
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Right now Medmen stock is down 1% at $2.02 on the OTC market. On the Canadian side, MMEN stock is trading lower by 1.10% at $2.68.
Over the years, MedMen Enterprises has managed to become one of the biggest marijuana operators in California, and with the establishment of its delivery service, it will be able to reach a far bigger customer base. Additionally, the company also launched its loyalty program, which is going to be available nationally and offer people with rewards.
The company’s business model is focused on providing people with a supply of premium marijuana, and that business model has served it well over the years. In California alone, MedMen has managed to establish as many as 37 retail outlets and has also expanded into Arizona, Illinois, New York, and Nevada.
Despite the fact that the company has a lot of promise, MedMen stock has had a disappointing time this year so far. The big reason for the poor performance is the fact that the company diluted a large chunk of shares in order to raise capital.
What do you think of MedMen Enterprises?
Featured image: Canva
