While U.S. licensed producers wait on legalization proposals to make their way through various state legislatures around the country, expansion in California continues at a breakneck pace.
Today, MedMen Enterprises Inc. (CSE: MMEN; OTCQX: MMNFF; FSE: A2JM6N) further cemented its presence in the state by closing the acquisition of Sugarleaf Trading Co, which is now the company’s third northern California retail site.
MedMen’s Chief Executive Officer Adam Bierman commented on the newly completed acquisition:
Recreational marijuana was legalized in California back in 2016 with the voter-led initiative Proposition 64, and retail sales began early last year following regulations set down by the state’s Bureau of Cannabis Control.
While growing, carrying, and consuming marijuana is legal across the state, several individual cities have placed restrictions on the number of licenses for retail dispensaries. That’s the case with Seaside, California, which has currently only provided six licenses to cannabis businesses in the city – one of which is Sugarleaf Trading Co.
A variety of California acquisitions have been announced in recent months as companies capitalize on one of the largest states to legalize both medical and recreational use cannabis.
Yesterday, Cresco Labs Inc. (CSE: CL; OTCQX: CRLBF) entered an agreement to acquire California company Origin House for $1.1 billion, which will represent one of the largest cannabis deals in the state if approved by shareholders.
While 2020 U.S. Presidential campaign rhetoric about decriminalizing or fully legalizing cannabis heats up, for the moment the industry is spread across a hodgepodge of states split between both medical and recreational adult-use markets.
With Sugarleaf now under the company’s banner, MedMen currently operates 32 cannabis stores in 12 states, with an additional 30 permitted in Florida and gearing up to open. MedMen’s subsidiary Pharmacann is also now licensed to open nine medical marijuana dispensaries in Pennsylvania.
MedMen’s growth with new acquisitions is currently being fueled by a $100 million investment from California equity group Gotham Green Partners. That investment is set to include two future tranches of $75 million apiece spaced out at six-month intervals to keep the company afloat over the coming year.