Recently, MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) received a $250 million investment from private equity firm Gotham Green Partners. Now, it's putting the money where it said it would; in expansion. Today, the company announced a newly acquired 100% stake in Long Beach's MattnJeremy, One Love cannabis dispensary. MedMen stock is on the rise in reaction to the news.
MedMen Stock Rising on Long Beach Acquisition
According to the release, MedMen Enterprises signed a "definitive agreement to acquire a 100% stake in MattnJeremy, Inc. LLC d/b/a One Love Beach Club."
With this acquisition, the company adds a "premier location" in southern California's third largest city. Further, it enhances its already impressive California footprint—MedMen already has 10 outlets in operation across California.
Adam Bierman, MedMen CEO, said on the news:
“We’re excited to welcome Long Beach to the MedMen family and continue our growth in the most important cannabis market in the world.”
Long Beach is the third largest city in Southern California with just under half a million residents. But a significant footfall is expected from tourists; last year the Long Beach Convention & Visitors Bureau estimated that more than 7.9 million visitors came to the city.
One Love Beach Club
Established in 2009, One Love is a cannabis store that currently has a "run-rate of approximately $6 million in unaudited gross revenue with an unaudited EBITDA margin of approximately 29%."
MedMen Enterprises has paid $13 million in total for the company. $10 million of this will be in the form of shares, $1 million in physical cash at closing and a further $2 million in deferred cash. The transaction is expected to close in 45 days once all regulatory approvals by local and state authorities are signed.
MedMen Stock
Cannabis retailer MedMen is in the green today. MedMen stock is up 6.56% and selling for $2.76 CAD at present. However, May has been a rough month for these shares as they lost almost 20%. This loss was exacerbated on the 29th when the company released its fiscal third-quarter operating results.
It showed increasing sales of 20% from the previous year, but that success was marred by operational losses exceeding $63.1 million. Shares fell 7% shortly thereafter.
What do you think of the latest acquisition? Are you a MedMen stock investor?
Featured Image: Canva
