MedMen stock is bucking the trend in Wednesday's session and moving up after MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) said that the company has got another round of funding worth $30 million from Gotham Green Partners.
Key Details
MedMen Enterprises has quickly emerged as one of the better-known cannabis retailers in the United States over the past year or so, and in a new development, the company announced that it had attracted an equity investment worth $30 million.
Gotham Green Partners made the investment, and this is Gotham's second investment in MedMen. All together now, Gotham Green Partners has made a total investment of $100 million in the cannabis retailer.
Wicklow Capital assisted in this round of funding as well and Adam Bierman, the Chief Executive Officer of MedMen, stated that this round of funding proves the continued commitment of the company's biggest investors.
MedMen Enterprises will use the investment to further broaden its presence in the state of Florida, where it already has a significant presence. But that's not all the money's going to be used for.
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MedMen also wants to further improve the state of its balance sheet, along with expanding the company’s presence, and also ensure that it has the wherewithal to look for expansion into strategically important locations.
MedMen stock is now trading higher by 2% at $3.40 CAD. On the OTC market, MMNFF stock is trading at $3.59, up by 1.90%.
MedMen Operations
However, in addition to the company’s presence in Florida, it is important to point out that MedMen Enterprises also has a strong presence in California, one of the most lucrative cannabis markets in the world. It has as many as 37 stores in the state and at this point of time, enjoys a 7% share of the market that is often considered to be the most important market in the United States.
That being said, MedMen is also looking to expand into other territories, and in partnership with Cronos Group (NASDAQ:CRON), it is in the process of setting up retail outlets in Canada. At this point in time, the rapid expansion has not allowed the company to make profits, but once it has established many retail outlets, that is sure to change.
MedMen stock has recovered almost 37% since June 5 as the stock has jumped from $1.93 to $2.60 on the OTC market.
Featured image: Canva
