A few weed stocks are trading in the red today, but the MedMen stock is not one of them. As investors catch up on all that went on over Christmas, many are tuning into the latest piece of MedMen news. It was announced on December 24th.
MedMen and PharmaCann: More News
Three days ago, MedMen Enterprises (CSE:MMEN) signed a definitive business combination agreement for the acquisition of PharmaCann, a Chicago-based company. Under the agreement, MedMen and PharmaCann will combine their businesses. A new holding company called New MedMen will also form and acquire PharmaCann securities. 11 members will be on the new company's board of directors. More details can be found here, but shareholders of MedMen are forecasted to receive more details shortly.
The goal of MedMen signing a definitive agreement with PharmaCann is so that MedMen can restructure its business and increase its cannabis license portfolio. Expanding the portfolio will lead to more than 70 retail stores and over a dozen production facilities. According to the Cowen Group, it is thought to operate in a dozen states.
MedMen Stock
We've heard of the MedMen/PharmaCann partnership since mid-October so this week's announcement isn't too surprising. The market seems to agree, with MedMen stock up more than 2%.
According to Yahoo Finance, as of 12:18 PM, MedMen is trading at $3.72, which puts it up 2.20%. The stock opened at $3.70, previously closing at $3.64.
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For Those Who Don't Know
MedMen Enterprises is a cannabis company with operations in New York, California, and Nevada. PharmaCann is a private company that grows medical cannabis and was incorporated four years ago.
The Takeaway
As we're still early in the trading day, and the stock is moving around, it will be interesting to see if MedMen stock can stay above the 2% line. Don't forget to check back in tomorrow for more pot stock news!
What do you think about MedMen acquiring PharmaCann?
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