MedMen stock has been unable to sustain at higher levels and currently trades near a 52-week low. Let's review what this means for MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF).
MedMen's Strength
The marijuana industry has grown tremendously over the past few years, and much of the growth has been generated due to the legalization of the product in Canada. However, the biggest piece remains the United States, and although 11 states have legalized marijuana so far, not many companies have been able to dominate the market—yet.
However, there is one company that is making a lot of effort into setting up a strong presence in the United States. The company in question is MedMen Enterprises, and after having gained a foothold in California, the company is trying to do the same in other states. Were it do achieve this, MedMen stock would no doubt benefit in the long-run.
If the United States is the biggest market for marijuana, then California is the crown jewel; California is the market that all cannabis companies want to capture. Moreover, it was the first state to legalize marijuana and has also legalized recreational use. Last but not least, the state has a higher population than Canada and presents an excellent opportunity for enterprising firms. This is exactly why MedMen started off in California. The company has managed to create a significant presence in California and currently operates as many as 11 stores in various parts of the state.
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MedMen stock is now trading lower by 0.50% at $2.69 CAD. On the OTC market, MMNFF stock is trading at $2.05, down by 1.45%.
Now that it's conquered California, MedMen Enterprises is now making a massive effort to become a major player in the state of Illinois. It is a relatively large state and has become the latest state to legalize marijuana, which is why the opportunities are huge. Moreover, the acquisition of the medical cannabis retailer PharmaCann will also give the company a greater presence in Illinois. PharmaCann gives MedMen a major presence in Chicago, the largest city in the state.
Moreover, it is important to point out MedMen currently operates three stores in Nevada, four in New York, and three in Arizona.
This is a company to keep an eye on as it continues to expand its footprint in the United States.
MedMen stock has corrected almost 40% since the beginning of this year.
Featured image: Canva
