Medmen Enterprises Inc (OTCMKTS:MMNFF) has signed a definitive business combination agreement with PharmaCann, LLC. According to the agreement, the combined company will go by a new name, New MedMen.
Particularly, the new company will take control of all securities offered by ParmaCann. In exchange, PharmaCann will assume subordinate voting shares in the newly formed company. In particular, the new voting shares will correspond to New Class B Shares of New MedMen.
Slew of acquisitions
In essence, the combined company will bring together all the assets and titles under the two companies. As such, New MedMen will have a huge portfolio of licenses. These licenses will allow the new company to operate across the US with a much larger customer base. Particularly, New MedMen will have under its control 76 retail stores and several cultivation and production facilities. Interestingly, the facilities and licenses give New MedMen access to 12 US States.
The transaction comes hot on the heels of the acquisition of Omaha Management Services by MedMen early this month. In particular, the acquisition was strategic in that Medmen Enterprises will now take control of licenses in various locations. These include licenses for processing and cultivation process in Arizona, Monarch and Scottsdale. Further, the licenses would allow Medmen to operate dispensaries in these locations.
Commenting on the developments, Adam Bierman, MedMen chief executive and co-founder said, “The acquisitions are a testament to the quality of our team and I couldn’t be prouder of our staff.”
Interestingly, the firm notes that the acquisitions gave Medmen access to America’s largest marijuana markets. For instance, Medmen will finally operate in Arizona which represents the largest adult-use market in the US.
These acquisitions come just weeks after Medmen released its financial results for Q2 2018. As per the results, the firm saw its sales grow 1,094% during the quarter. Further, the quarter saw the firm regain from the huge losses registered last year. Particularly, the report noted that Medmen’s stock gained 6.6% since June this year.
