Medmen Enterprises Inc (OTCMKTS:MMNFF) represents perhaps the cannabis company most likely to benefit the most from an eventual shift toward broader cannabis acceptance by legislators in the US. The company has aggressively moved to position itself around US markets, and its latest gambit to grab PharmaCann is another step in that direction. The company just provided additional detail related to the binding letter of intent for MedMen to acquire all of PharmaCann’s outstanding equity interests.
According to the release, “Under the terms of the Agreement, PharmaCann units will be exchanged for equity interests which will include the right to receive the Company’s Class B Subordinate Voting Shares, and which on a pro-forma basis will equal 25% of the then fully-diluted outstanding shares of the Company (calculated based on the treasury stock method) upon the closing of the transaction. The total transaction was valued at $682 million (USD) based on the closing price of the Company’s Class B Subordinate Voting Shares on October 9, 2018 (such value being subject to change based on the daily closing price of the Company). No change of control to the Company will result upon the Closing. The Shares are expected to be subject to lock up agreements for a period of between 6-12 months.”
Medmen Enterprises Inc (OTCMKTS:MMNFF), together with its subsidiaries, operates in the cannabis space in the United States.
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MMNFF, more broadly, is a leading cannabis company in the U.S. with assets and operations across the country. Based in Los Angeles, MedMen brings expertise and capital to the cannabis industry and is one of the nation’s largest financial supporters of progressive marijuana laws.
The company cultivates, produces, possesses, uses, and distributes/retails cannabis in the recreational and medicinal cannabis marketplace. As of June 6, 2018, it owned and operated 18 licensed cannabis facilities under the MedMen brand name in California, Nevada, and New York.
The company frames itself as “the preeminent cannabis company in the United States” with multiple assets and operations in California, Nevada, New York, and Florida. MedMen owns and operates licensed cannabis facilities in cultivation, manufacturing, and retail, and is one of the most well-recognized cannabis brands in the world today.
Headquartered in Los Angeles, MedMen employs more than 800 workers across the United States. It was founded in 2010 by Adam Bierman and Andrew Modlin, two visionary entrepreneurs who saw not just a tremendous business opportunity in the growing legalization of marijuana, but a chance to re-define our society’s relationship with cannabis. MedMen supports sensible, clear and just drug laws.
The Company is the single largest financial supporter of progressive marijuana laws at the local, state and federal levels, giving directly to pro-legalization groups, industry organizations and political candidates.
The company is headquartered in Culver City, California. MedMen Enterprises Inc. is a subsidiary of The Medmen Of Nevada 2 Llc.
Moreover, the company operates as a cannabis company in the United States. The company cultivates, produces, possesses, uses, and distributes/retails cannabis in the recreational and medicinal cannabis marketplace. It owns and operates 19 licensed facilities in California, Florida, Nevada, and New York. The company is headquartered in Culver City, California.
We started off by noting that MMNFF just hit the wires with additional detail related to the binding letter of intent for MedMen to acquire all of PharmaCann’s outstanding equity interests. We have noted that this has become one of the more aggressively positioned names in the US cannabis market.
The takeout of PharmaCann presents itself as another key catalyst here, and talk of a possible ramp in legislative openness at the Federal level in the US is helping to foster a sharp breakout in MMNFF shares over recent days, with the stock now up as much as 40% since announcing its interest nine days ago.
According to the release, “The transaction is subject to regulatory approvals by various local and state authorities in each of the U.S. states where PharmaCann’s assets and licenses are held (the “Approvals”). The Closing is expected to take 6-12 months based on the receipt of the Approvals. In the event that certain Approvals are not obtained by the Closing, a portion of the Share consideration, as determined by the parties (but in no event more than 30% of the consideration), will be held in escrow until the Approvals are received, and such escrowed Shares shall be released to PharmaCann unitholders upon the receipt of such Approvals. In the event that an Approval is not able to be obtained within 24 months following the execution of definitive documentation, the parties shall will use commercially reasonable efforts to transition such license to a third party with any such proceeds going to the Company and any related escrowed shares released to PharmaCann unitholders.”
Medmen Enterprises Inc (OTCMKTS:MMNFF) has about $12.2M in cash on the books against to a mountain of over $86M in total current liabilities. The company has been pulling in significant revenues, with over $7M in Q1 of this year, representing over 630% quarterly y/y growth on the top line.
Pushing the barriers for global distribution, Phoenix Life Science International (PLSI) is the next cannabis play. Just think Canopy x 100, that is how big their plantation in the tropics will be. No lights, no green houses, just maximum growth + minimal cost = home run. Learn More Now!
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