Thanks to a new bill, Illinois is on track to become the 11th US state to legalize cannabis. Why is this important for MedMen stock (CSE:MMEN)(OTCQX:MMNFF) investors? There's one very big reason.
Let's check this out.
MedMen Stock and Illinois
Last weekend, Illinois Governor J.B. Pritzker, announced that state lawmakers reached an agreement to legalize recreational marijuana by January 1st, 2020.
The impending bill allows residents to carry up to 30 grams of cannabis on their person, and those living outside the state 15 grams. Residents will also be allowed to grow up to five plants, and the legal age limit for purchase set at 21 and older. In essence, the new bill will open up a potentially multibillion-dollar recreational industry.
While the date set for legalization is January 1st, 2020, recreational licenses for dispensaries won't be issued until May or June of that year.
So why does MedMen Enterprises, in particular, benefit from this new bill? Well, it gives a whole new meaning to it's $682 million all-stock deal to buy privately held PharmaCann.
MedMen Stock and PharmaCann
At present, MedMen has only one open medical dispensary in the state. But PharmaCann holds six medical marijuana licenses in Illinois and is one of the leading brands here.
It has four open dispensaries already serving roughly 80% of the Chicagoland market along with two production facilities. With an already-established name, already-opened operations, and an already set-up infrastructure, MedMen's entry into Illinois's recreational market is now all too easy.
The company will simply apply for a recreational license and/or update its existing medical licenses, and it will be at the fore of this new multibillion-dollar market.
PharmaCann Acquisition
For MedMen stock investors this is only the beginning of major potential. The vertically integrated company acquired PharmaCann in December 2018. In doing so, it doubled its reach across the US—from six to 12 states.
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Overall, the deal gave MedMen access to 76 licensed dispensaries and 16 factories. With operations already in California, Nevada, New York, Arizona, and Florida, the PharmaCann deal brought the company into Illinois, Maryland, Massachusetts, Michigan, Ohio, Pennsylvania, and Virginia.
MedMen now has—according to the Cowen Group—a combined market reach that accounts "for more than half the estimated pot market of $75 billion in 2030".
MedMen stock is currently selling for $2.54 USD on the OTC. Are you excited by the potential in Illinois? We're you expecting it to be the 11th state to legalize recreational marijuana?
Featured Image: Canva
