MedMen stock is down 2% today despite MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) pledging its support to the recreational cannabis campaign group Make It Legal Florida.
Recreational Legalization a Huge Benefit for MedMen Stock
Make It Legal Florida began mailing out fliers this week in an effort to convince voters to support a petition urging the state to legalize recreational marijuana. The group is supported by MedMen Enterprises, one of the largest medicinal cannabis retailers in the state, which contributed $545,000 USD to the lobbying group's efforts. MedMen is licensed to operate up to 35 locations in Florida, and so statewide recreational legalization would be of huge benefit to MedMen stock.
The group's chairman, Nick Hansen, also serves as MedMen's southeastern director of government affairs and said that there was a desire among Florida residents to purchase marijuana legally. “We saw public and private polling showing that folks 21 and over want to have the ability to experience cannabis as part of a normal product that they would buy like you’d buy anything in a CVS and retail store.” MedMen stock is currently valued at $1.82.
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Tough 12 Months for MedMen Stock
In Septemeber, MedMen Enterprises announced the opening of three new medicinal cannabis locations in the Sunshine State, bringing the company's overall presence there to four locations, with a further eight more openings planned before the end of the year. The three new locations, located in St. Petersburg, Key West, and Pensacola, provide the company with access to a considerably broader market given their prime retail locations. Despite the continued expansion into Florida, MedMen stock dropped 6% following the announcement.
That trend is indicative of MedMen's broader performance over the last 12 months, with MedMen shares down over 80% from this time last year. This declining share value has partially been a result of declining sales in key markets, such as California where sequential quarterly growth was just 5%, coupled with an operating loss of $178.4 million USD, which does not make for easy reading for investors.
What sort of effect do you think it will have for MedMen to join up with Make It Legal Florida?
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