MedMen

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MM Enterprises USA, LLC
Public
Traded as
IndustryCannabis, Medical marijuana
FounderAdam Bierman
(Founder & CEO)
Andrew Modlin
(Founder & President)
Headquarters,
United States
Area served
Arizona, California, Nevada, New York, and Florida
RevenueIncrease $39.8 million (2018)[1]
Total assetsIncrease $282.2 million[1]
Websitemedmen.com

MedMen Enterprises or MedMen is a publicly traded, United States-based cannabis company with operations in Arizona, California, Nevada, New York, and Florida.[2][3] MedMen owns and operates 19 licensed cannabis facilities in cultivation, manufacturing, and retail. Its stock trades on the Canadian Securities Exchange under the ticker symbol MMEN.[4] MedMen is traded in the United States (MMNFF).

Based in Culver City, California, MedMen has over 1,000 employees.[5][6][7]

History[edit]

MedMen was co-founded in 2010 by CEO Adam Bierman and President Andrew Modlin.[8] In an interview with Green Entrepreneur the pair said they saw a business opportunity in the emerging cannabis industry and a chance to redefine society's relationship with cannabis. In December 2015, MedMen West Hollywood opened as the first cannabis retail store in California. MedMen opened retail outlets in New York and Nevada in 2017 and 2018, respectively.

In April 2018, the company opened MedMen Mustang, a 45,000 square foot greenhouse and manufacturing facility near Reno, Nevada with expectations of producing 10,000 pounds of high-quality cannabis annually.[9]

In May 2018, MedMen began construction on a second 45,000-square-foot cannabis factory in Desert Hot Springs, California. It is scheduled to open in early 2019.[10]

MedMen went public on the Canadian Stock Exchange via a reverse takeover (RTO). The company listed under the stock ticker symbol MMEN on May 29, 2018.[6]

In June 2018, MedMen announced its acquisition of a nursery and retail license to build 25 stores in Florida.[6]

In the second half of 2018, MedMen acquired dispensaries in Arizona, Northern California, and Illinois. The company also initiated a $682 million acquisition of PharmaCann. The acquisition set a record as the largest U.S.-based cannabis company buyout. The deal also expanded the number of retail licenses owned by MedMen to 66 across 12 states, and increased MedMen’s total cultivation or production facility licenses to 13.[11][12]

In February 2019, MedMen announced a relationship with Treehouse Real Estate Investment Trust (“Treehouse”), a cannabis-focused REIT that had raised $133 million to acquire properties from MedMen.[13]

In 2019, MedMen former CFO, James Parker, filed a lawsuit claiming that he was wrongfully discharged; while MedMen's CEO its board denied the claims, calling them baseless and asserting that they will prevail in court.[14] On April 19, 2019, MedMen’s Chief Operating Officer Ben Cook, general counsel Lisa Sergi Trager, and Senior Vice President of Corporate Communications Daniel Yi all resigned, departures attributed by CNBC to “concerns of overspending and an unhealthy work environment.”[15] Parker’s lawsuit’s claims resulted in the New York Medical Cannabis Industry Association removing MedMen from its roster.[16]

Funding[edit]

Prior to its Canadian Stock Exchange listing, MedMen raised approximately $110 million through a private placement at an implied enterprise valuation of $1.65 billion.[17]

The company also raised nearly $200 million (debt and equity) from September 2018 through November 2018, but reported only $80 million in cash on hand at year end. In March 2019, MedMen announced a $250 million convertible financing facility with Gotham Green Partners. Under the terms of the agreement with Gotham Green Partners, $150 million of the $250 million convertible financing will only be released if “certain conditions [are met] and share price thresholds [are] achieved” by MedMen.[18]

Retail stores and facilities[edit]

As of early 2019, MedMen operated 18 dispensaries serving both medical and recreational customers in Arizona, California, Illinois, Nevada, and New York.[19][14]

Business strategy[edit]

Domestic[edit]

MedMen West Hollywood was one of two licensed dispensaries operating in time for the start of legal recreational use in the Greater Los Angeles area on January 2, 2018.[20]

According to Bureau of Cannabis Control records, the first state license for a cannabis business in the city of Los Angeles went to MedMen Beverly Hills on January 19, 2018.

In February 2019 the company released a video ad directed by Spike Jonze and narrated by Jesse Williams[21] touting the "normalization" of cannabis usage in American culture and linking the practice to founding father George Washington. The ad also criticizes anti-cannabis propaganda and American drug war policy.

International[edit]

In 2015, MedMen partnered with MedReleaf—now Aurora Cannabis—Canada's largest producer and distributor of medical marijuana, to open opportunities for collaboration on product development and market penetration with MedReleaf CEO Neil Closner joining MedMen's Board of Advisors.[22]

On March 19, 2018, MedMen announced its cross-border, joint-venture partnership with Canadian company, Cronos Group, called "MedMen Canada."[23]

See also[edit]

References[edit]

  1. ^ a b "MedMen Generates $20.6 Million Revenue in Fiscal Q4". New Cannabis Ventures. Archived from the original on 25 October 2018. Retrieved 20 October 2018.
  2. ^ "L.A. pot retailer MedMen has 12 shops, a $1.6-billion valuation and, coming soon, Canadian stock". LA Times. Archived from the original on 10 November 2018. Retrieved 18 October 2018.
  3. ^ "MedMen inks $53 million acquisition of Florida cultivator, dispensaries". Marijuana Business Daily. 2018-06-06. Archived from the original on 2018-08-08. Retrieved 2018-08-07.
  4. ^ "lA-based Medmen lists on the Canadian Securities Exchange with $1.6 Billion Valuation". Daily News. Archived from the original on 19 October 2018. Retrieved 18 October 2018.
  5. ^ "MedMen's $1.65 Billion Listing Shows Cannabis Is Moving North". Bloomberg.com. Archived from the original on 2018-08-25. Retrieved 2018-08-07.
  6. ^ a b c "MedMen inks $53 million acquisition of Florida cultivator, dispensaries". Marijuana Business Daily. 2018-06-06. Archived from the original on 2018-08-08. Retrieved 2018-08-07.
  7. ^ "EXCLUSIVE: MEDMEN, THE "APPLE STORE OF CANNABIS," LAUNCHES ITS FIRST WELLNESS-FOCUSED PRODUCT LINE". Well and Good. Archived from the original on 27 November 2018. Retrieved 26 November 2018.
  8. ^ Small, Jonathan (2018-07-09). "How MedMen Became the Starbucks of Pot". GreenEntrepreneur. Archived from the original on 2018-08-07. Retrieved 2018-08-07.
  9. ^ "MedMen Cannabis Production Facility in Nevada Nearly Complete". Greenhouse Grower. 2017-05-18. Archived from the original on 2018-08-07. Retrieved 2018-08-07.
  10. ^ "MedMen opens state-of-the-art marijuana cultivation facility outside Reno". The Cannabist. 2018-04-16. Archived from the original on 2018-08-07. Retrieved 2018-08-07.
  11. ^ Gurdus, Lizzy (2018-10-15). "MedMen CEO on US cannabis retail, 'blockbuster' PharmaCann takeover". www.cnbc.com. Archived from the original on 2019-04-23. Retrieved 2019-04-23.
  12. ^ Berke, Jeremy. "High-end marijuana retailer MedMen just spent $682 million on the largest US cannabis acquisition in history". Business Insider. Archived from the original on 2019-03-30. Retrieved 2019-04-23.
  13. ^ "MedMen Reports Second Quarter Fiscal Year 2019 Financial Results". investors.medmen.com. Retrieved 2019-03-15.
  14. ^ a b Peltz, James (24 February 2019). "Fast-growing pot seller MedMen faces lawsuit by former insider". Los Angeles Times. Archived from the original on 25 February 2019. Retrieved 26 February 2019.
  15. ^ Schlesinger, Thomas Franck, Scott Zamost, Jennifer (2019-04-19). "Top executives at MedMen quit amid claims of financial duress". www.cnbc.com. Archived from the original on 2019-04-23. Retrieved 2019-04-23.
  16. ^ Rodrick, Stephen; Rodrick, Stephen (2019-04-16). "Rise of Big Weed: MedMen's Growing Pains". Rolling Stone. Archived from the original on 2019-04-23. Retrieved 2019-04-23.
  17. ^ "MedMen - The First Billion Dollar Marijuana Startup? - Nanalyze". Nanalyze. 2018-02-26. Archived from the original on 2018-08-07. Retrieved 2018-08-07.
  18. ^ cnbc.com, Alex Berenson, special to (2019-03-28). "MedMen's financial troubles are a warning for the marijuana industry". www.cnbc.com. Archived from the original on 2019-04-23. Retrieved 2019-04-23.
  19. ^ "Marijuana Dispensary Locations - MedMen Cannabis Dispensary". medmen.com. Archived from the original on 2019-04-16. Retrieved 2019-04-23.
  20. ^ "High times for local smokers in WeHo – Park Labrea News/ Beverly Press". Park Labrea News/ Beverly Press. 2018-01-03. Archived from the original on 2018-08-07. Retrieved 2018-08-07.
  21. ^ Beer, Jeff (25 February 2019). "Spike Jonze and Jesse Williams made a totally normal weed ad for MedMen". Fast Company. Archived from the original on 26 February 2019. Retrieved 26 February 2019.
  22. ^ "MedMen and MedReleaf Partner to Expand Medical Marijuana Services – MedReleaf". shop.medreleaf.com. Archived from the original on 2018-08-08. Retrieved 2018-08-07.
  23. ^ Mary Carreon. "MedMen Leaps Into Canadian Cannabis Market For Joint Venture With Cronos Group". Forbes. Archived from the original on 2019-04-14. Retrieved 2019-04-24.

External links[edit]