MedMen Enterprises Inc (CSE:MMEN) (OTCQX:MMNFF) has today announced that its acquisition of PharmaCann has moved a step closer, boosting MedMen stock.
MedMen Stock in the Green
Today's announcement follows the expiration of a waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), which states that a company cannot make certain mergers or acquisitions until a filing has been made with and approved by the US Federal Trade Commission and Department of Justice to determine whether such transactions will adversely affect commerce in the US. MedMen stock is in the green this morning and currently valued at $2.06, despite a lack of buying interest.
The expiration of the waiting period is the final condition needed for MedMen to acquire PharmaCann, and the deal is now expected to be finalized by the end of the year. PharmaCann is one of the largest medical cannabis providers in the US, and when this deal was initially announced on Christmas Eve last year, it more than doubled the number of states where MedMen Enterprises has licenses to 12. However, since the deal was announced, MedMen stock has dropped over 20%, but this is probably more indicative of the market as a whole rather than a reaction to this trade.
"Tremendous Opportunity" for Investors
"MedMen has built an enviable footprint which has cemented our brand in the largest cannabis markets in the world. Our transformative acquisition of PharmaCann will mold us into an even bigger and bolder company for our consumers. This acquisition doubles the number of states where MedMen has licenses, extending our geographic footprint and creating tremendous opportunity for our company and our shareholders. We are excited to be one step closer to closing the acquisition," said MedMen CEO Adam Bierman in today's statement.
While MedMen shares were initially valued as high as $6.94 when cannabis was legalized in Canada last October, stock has since seen quite a drop-off and fallen into penny stock territory due in most part to the significant overvaluation of the market at the time of legalization. Either way, today's announcement is promising news for investors as the market looks to recover from a difficult summer.
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