MedMen stock has been a hive of activity on the CSE this week. Beginning Monday 25th, MMEN stock saw a spike in both value and volume with the price jumping from $4.03 to $4.24 in a few hours of trade. The trend continued, and the following day MedMen Enterprises jumped $4.19 to $4.46.
As it now stands, MMEN stock is trading at $4.31 CAD. So what's all the fuss for? What has investors flocking to MedMen stock this week?
MedMen Stock Increase
MedMen Enterprises (CSE:MMEN) (OTCQB:MMNFF) released its Q2 results yesterday, which we can assume is one impetus for the stock increase. MedMen Q2 results were good, and the highlights are as follows:
- Revenue grew by 39% to $29.9 million from the Q1 period
- Specifically, California retail sales amounted to $23.7 million in revenue, a 28% growth from the Q1 period
- Increased over gross profit margin to 53% from 45% in the previous quarter
The results speak for themselves, and MedMen stock has reacted favorably.
According to CEO Adam Bierman:
“Our strong second quarter results support MedMen’s commitment to drive strong retail and sales performance, while efficiently scaling the Company and executing on our growth strategy.”
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MedMen Closes Acquisition
One highlight from the MedMen Q2 results shouldn't go unnoticed. MedMen Enterprises closed key acquisitions throughout the quarter. These include a "vertically-integrated license in Scottsdale, Arizona and dispensary license in Emeryville, California."
The Arizona acquisition is especially appealing, as it plants MedMen's footprint firmly in this state. Medical cannabis is legal in Arizona, and according to AZ Central, the "industry took in more than $400 million in revenue for the year, not including sales of pipes and other non-drug merchandise."
That is an impressive sales figure for one state alone and should boost MedMen stock's prospects down the line.
Arizona Acquisition
The two vertically-integrated operations here are Kannaboost Technology Inc. and CSI Solutions LLC, collectively referred to as 'Level Up'.
With the closing of the acquisition, MedMen has secured 25,000 square feet of cultivation and production capacity in Tempe and Phoenix along with retail locations in Scottsdale and Tempe. The company also, importantly, now has a 40% stake in one of Arizona's most popular brand of cannabis product: K.I.N.D Concentrates.
With a distribution reach of over 90% of dispensaries in Arizona, K.I.N.D has the potential to add serious revenue to MedMen's books in Q3 and Q4.
Will MedMen stock soar further on the latest results? What do you think of the MedMen Q2 results and K.I.N.D acquisition? Is MMEN one to watch?
Let us know below!
Featured Image: Canva
