MedMen Enterprises Inc (CSE:MMEN), one of the fastest-growing companies in the US cannabis industry, started trading today on the Canadian Securities Exchange (CSE).
With more than 800 employees, the company – with its sleek, modern Apple-esque retail stores – operates 18 licensed facilities in California, Nevada and New York. The importance of these three states? They account for around half the addressable cannabis market in the US.
US companies look north
US cannabis companies are increasingly looking to Canadian markets as they raise money. Not to mention the fact that MedMen also intends to enter the Canadian recreational marijuana market when legal – a move that could pivot MedMen into a leadership position in the country.
“MedMen’s vision is simple but revolutionary: cannabis as a consumer product,” said MedMen Co-founder and CEO Adam Bierman. “For the better part of a decade we have been singularly focused on that vision – creating the systems and infrastructure that raise the bar on product quality and safety and providing a retail shopping experience that is second to none. By going public, MedMen gives investors a ground-floor opportunity to participate in the enormous and untapped potential of the fastest growing industry in the United States.”
Currently, state-sanctioned sales of cannabis in the US are estimated to be US$7 billion annually – expected to reach US$75 billion by 2030, according to financial services firm, the Cowen Group.
"Our listing on the CSE will give MedMen greater flexibility in accessing capital in the public equity markets to leverage our first-mover advantage and to build upon our track record of growth," Bierman said.
Canadian partners
This March, MedMen announced a joint venture with Canadian licensed producer, Cronos Group. The aim is to bring the MedMen retail experience to Canada, in provinces such as British Columbia and Alberta, where private retail stores will be allowed.
"We are making marijuana mainstream by making it okay for soccer moms and middle-aged professionals to use cannabis products," said MedMen co-founder and president Andrew Modlin. "People are using it for ailments, for wellness or to just relax or socialize with friends... We are marching steadily toward a future where buying and using cannabis products will be just as normal as buying wine or beer."
Shares of MedMen were C$5.15 on Tuesday.