MedMen stock is on the rise. Up over 4% in pre-market trading, investors are pleased with the latest news from MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF). The company received a significant investment from Gotham Green Partners (GGP), and shares are moving as a result.
Let’s check this out.
MedMen Stock GGP After Investment
According to a company press release, MedMen Enterprises has “signed a binding term sheet for a senior secured convertible credit facility of up to US$250,000,000 from funds managed by Gotham Green Partners, an investor in the global cannabis industry.”
With the $250 million USD investment, MedMen plans on using the money to “operationalize the balance of [its] footprint” and fund general capital expenses of the business.
The company details this further, saying the capital will go towards:
- Operationalizing existing retail stores, especially in Florida where MedMen has 30 licensed stores
- Expanding through acquisitions and investments in “core markets”
- Supporting the output of its higher-margin, in-house branded products
- Furthering investment in technology and the company’s digital infrastructure
- Condensing its supply chain and ramping up cultivation and production capabilities, enhancing margins
MedMen Stock Today
As stated, MedMen stock is on the rise in pre-market trading, and it will be interesting to see what the next few days of trading bring. At the time of writing, shares are trading at $3.10 USD on the OTCQX. The company’s fortunes appear to be turning around after a month of negative press that saw the stock fall to new lows.
At the end of 2018, MedMen was showing itself as an unquestionable leader with Q4 financials showing $29.9 million in quarterly sales. 2019, however, has been racked with controversies and this has crushed MedMen stock.
Despite this, the company has calmly continued its operations and is on the verge of closing the biggest acquisition ever in the US cannabis industry—buying PharmaCann for $682 million. This acquisition will expand MedMen’s reach from five to twelve states, and open the doors to nearly half of the US population.
Bierman on the GGP Investment
According to company management, GGP’s MedMen investment is the largest investment to date “by a single investor in a publicly traded cannabis company with US operations.”
Adam Bierman, CEO of MedMen Enterprises, said the following on the news:
“This strategic partnership with Gotham Green Partners represents another key milestone for MedMen and stems from our long-standing relationship with The Cronos Group and GGP’s brand portfolio […] The growth capital will be used to operationalize the balance of our footprint and we look forward to creating further alignment with GGP and their global cannabis platform.”
What do you think about MedMen stock and GGP’s investment? Is it one to watch for you?
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