MedMen Enterprises Inc. (CSE: MMEN; OTCQX: MMNFF; FSE: A2JM6N) today completed the sale of properties to a cannabis-focused real estate investment organization.
Netting the company $30.6 million in proceeds after paying off debts, the terms of the deal see MedMen selling two properties in different states to Treehouse Real Estate Investment Trust, Inc.
The purchased properties include a 10,000 sq. ft. storefront in Las Vegas due to open by the end of 2019, along with a 45,000 sq. ft. cannabis production facility in Desert Hot Springs, California that is in the final stages of licensing and expected to begin cultivation later this year.
Treehouse focuses on acquiring and managing cannabis-related property, and is currently advised by a MedMen affiliate. MedMen’s CEO Adam Bierman commented on the completed sale:
MedMen Enterprise’s stock was up slightly after the news to $2.78 a share, which is still significantly lower than the high of $6.49 the stock saw back in October of 2018 when the price began falling sharply.
The company has experienced a series of setbacks in the past year, most recently culminating in the New York Medical Cannabis Industry Association cutting ties with MedMen last month.
That hasn’t stopped MedMen from pushing forward with new initiatives, such as kicking off the “New Normal” campaign earlier this month featuring actor Jesse Williams and director Spike Jonze. Williams has been engaged in interviews regarding cannabis legalization, and the two teamed up for a high budget ad spot pointing out the widespread acceptance of cannabis in U.S. and Canadian culture.
Aside from that campaign, MedMen is due to make two high profile public U.S. appearances to promote cannabis in the U.S.
The company’s Chief Executive Officer will appear at the South By Southwest festival today in Austin, Texas to discuss changing perceptions of cannabis culture.
Bierman will additionally appear at the 31st Annual ROTH Conference next week in Laguna Niguel, California. That gathering of investors and industry insiders will feature more than 500 companies, including fellow cannabis corporation Green Thumb Industries Inc. (CSE: GTII; OTCQX: GTBIF).
MedMen currently operates stores in New York, Las Vegas, and Los Angeles, with the company’s recent expansion efforts heavily focused on California.