Last month, MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) disclosed that it secured an investment from Gotham Green Partners worth $250 million. Today, the Los Angeles-area cannabis company announced that it's closed that investment. On the news, MedMen stock appears to be fluctuating between the green and red zone.
MedMen Stock Fluctuating after Closing $200M Investment
Back in March, MedMen Enterprises called the investment the largest "to date by a single investor in a publicly traded cannabis company with U.S. operations." The company also said the partnership with Gotham, a global cannabis investor, "represents another key milestone for MedMen." After the initial announcement, MedMen stock increased by 5%.
Today, however, things are a bit different, with MedMen stock fluctuating between green and red. As of 12:27 PM, MedMen stock resides in the red zone, down 0.53% on the CSE, despite the closing of the Gotham investment. Earlier in the day, MedMen stock was up around 0.50% on the same exchange. Meanwhile, on the OTC market, as of 12:43, MMNFF stock is down 1.57%.
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Regardless of the fluctuation in MedMen stock, there's a lot for cannabis investors to look forward to. According to MedMen Enterprises, the growth capital will be used to fund general working capital, as well as to operationalize existing retail licenses and quicken geographic expansion.
Speaking on the news, Jason Adler of Gotham Green said his team is "excited to close our investment into MedMen." Adler added that MedMen has "firmly established itself as the leading cannabis retailer in the United States." He attributed the company's "unparalleled physical and brand footprint across the country" to MedMen's success.
Takeaway
What do you think about MedMen closing the investment with Gotham Green Partners? Do you think it will help MedMen become even more of a leader in the cannabis sector? If so, are you surprised to see MedMen stock trading in the red?
Let us know what you think in the comments below!
Featured image: Canva
