MedMen Stock Gains on Continued Florida Expansion

MedMen stock

MedMen stock is up 5% on Friday after MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) announced the opening of two new locations in Florida, bringing its retail presence in the Sunshine State to seven.

MedMen Betting Big on Florida Market

MedMen Enterprises, which operates 32 locations across the US, is continuing its expansion into the Florida market with the opening of a store in Tallahassee and another in the popular holiday destination of Orlando. Florida is the third-largest state in the US, and while recreational marijuana is still illegal, there is a robust medicinal cannabis market for MedMen to target, with over 260,000 qualified patients. MedMen stock is currently trading at $1.69 following the announcement.

MedMen Buds, the company’s new loyalty program will be available to all patients at these locations. In addition, MedMen’s fully owned and operated, same-day delivery platform, which currently services California and Nevada, will be available to Florida patients soon.

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MedMen Shares Down 80% This Year

MedMen stock has dropped over 80% in the last year after a series of setbacks sent it into a downward spiral. The issues date back to April when a scandal in head office led to an executive-level reshuffle that saw the departure of the CFO, COO, and General Counsel. In a lawsuit, the former CFO alleged that the work environment at MedMen Enterprises was rife with homophobia, racism, and misogyny from the very top.

MedMen has made moves to put that dismal chapter behind it; however, quarterly losses of about $60 million USD meant MedMen stock never truly had the chance to recover. Coupled with substantial unprofitability, the company is diluting shareholders in order to fund an aggressive storefront expansion. While this strategy may bear fruit down the line, and is showing signs of doing so today, investors are still clearly apprehensive of MedMen.

Last month's parody of the company on Comedy Central's South Park, in which MedMen was portrayed as "posers" seeking to ban homegrown cannabis in order to preserve its own profits, is a clear indication of the public perception of MedMen Enterprises. The company has charged head-on into a still youthful industry and has already been rocked by scandal and lack of profitability out the gate. This makes for grim reading for investors. What do you think of MedMen stock?

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