closed at $4.66 on Monday, a 21% increase from Friday’s close. The stock reached as high as $4.86 at one point. It looks like the broader investor community is no longer waiting on the sidelines to capitalize on this U.S. opportunity.
The U.S. market is projected to grow to US$75 billion by 2030, according to the Cowen Group. California alone could eclipse Canada’s entire market. In addition to market size, operators in the U.S. do not face the possibility of a government-controlled supply chain, a distinct possibility in some Canadian provinces. This is a race for market share in the biggest marijuana market in the world, and few have the head start that MedMen does.
MedMen currently operates 18 facilities, including 13 stores, across three states. The recent acquisition of a Florida license, the Company says, puts it on path to 45 stores in the top four cannabis markets in the U.S.; California, Nevada, New York and Florida.
It seems the Company benefited from several significant catalysts over the past week, which culminated in Monday’s heavy volume of over 3.6 million shares traded. The Florida acquisition included one of only 13 licenses in the rapidly growing medical marijuana market estimated at US$1.4 billion in annual sales. The Company now also owns a cultivation facility and five acres of land in Central Florida, and the right to open 25 medical marijuana dispensaries in the state.
On the heels of the Florida acquisition, the Company inaugurated its store on Abbot Kinney BoulevardSaturday, on a stretch of trendy stores, restaurants and coffee shops GQ magazine called “The Coolest Block in America.” Proving the brand’s ability to draw a crowd, the ribbon cutting event was attended by U.S. Rep. Ted Lieu, State Senator Ben Allen, State Assembly Member Reggie Jones Sawyer, and actressRosario Dawson.
(photo caption: From left – State Assembly Member Reggie Jones Sawyer, U.S. Rep. Ted Lieu, State Senator Ben Allen, MedMen CEO Adam Bierman, actress Rosario Dawson.)
“I’m a big supporter of MedMen. It’s the second store in my district and I’ve always been a big supporter of cannabis legalization,” Lieu said in front of a bank of media cameras. It marked the first time in history that a sitting U.S. Congress member participated in the opening of a marijuana store.
MedMen’s bump on Monday shows growing excitement and demand for U.S. cannabis companies. Other U.S. based companies on he CSE also showed gains on Monday, including iAnthus (CSE:IAN)) and MPX (CSE:MPX). The announcement on Friday by President Donald Trump that he would support a bipartisan bill protecting states’ right to legalize marijuana may have given investors increased confidence that now is the time to get exposure to the U.S.
(MedMen Abbot Kinney opening day.)
It looks like investors are beginning to get the full picture and the tremendous unlocked value in MedMen’s portfolio of assets. The Company’s robust retail footprint and its ability to execute M&A across the country will allow the company to continue gaining leverage and power over the U.S. supply chain.
(MedMen 45,000 sq. ft. greenhouse and manufacturing facility outside Reno, Nevada.)
MedMen.com
FULL DISCLOSURE: MedMen Enterprises is a paid client of Stockhouse Publishing.