MedMen Enterprises, one of the most recognizable companies in the growing cannabis industry, has acquired medical cannabis dispensary chain PharmaCann for $682 million in stock, which is the largest cannabis acquisition in the U.S. to date.
“This is a transformative acquisition that will create the largest U.S. cannabis company in the world’s largest cannabis market,” MedMen CEO Adam Bierman said.
MedMen is based in Los Angeles and has 14 cannabis dispensaries in California, New York and Nevada. MedMen recently acquired a license to open and operate 30 retail stores in Florida and has signed agreements to acquire a retail store in Illinois, cultivation and retail operations in Arizona, and an additional non-operating retail license in California. PharmaCann is licensed for 18 retail stores in eight states in addition to eight cultivation and production facilities in seven states. The combined company would have 79 cannabis licenses across 12 states, including 66 retail licenses and 13 cultivation licenses.
Today, we’re excited to announce our plans to acquire PharmaCann.
This is the largest deal in U.S. cannabis history and it more than doubles our market reach.
Find out more here: https://t.co/YuGukaR5XP
— MedMen (@ShopMedMen) October 11, 2018
As one of the more recognizable brands in the cannabis industry, MedMen has been working on becoming more of a household name by creating their own product line and partnering with celebrities like Gwyneth Paltrow and her lifestyle brand Goop to release a line of cannabis products. Former Mayor of Los Angeles, Antonio Villaraigosa, has also joined the company on the board of directors. In April, a high-profile medical dispensary was opened on Fifth Avenue in Manhattan as MedMen plans for a future of legal recreational cannabis in New York.
MedMen went public earlier this year through a reverse takeover in Canada, which opened the door for the company to announce deals such as this. Shares of the company have jumped 25 percent since its trading debut, giving the company a market value of $1.83 billion. MedMen’s dispensaries have been compared to Apple Stores, with customers citing clean and sleek stores that are decorated to mimic a high-end shopping experience.