MedMen To List On Canadian Securities Exchange Tomorrow
MM Enterprises USA, LLC (MedMen) is expected to list on the Canadian Securities Exchange (CSE) tomorrow. The American-based Licensed Producer and retail dispensary makes the jump to Canadian markets by way of Reverse Takeover (RTO) by Ladera Ventures Corp. Upon opening, it will substantial dwarf all CSE individual issues in terms of market capitalization.
With a pre-listing valuation in the $1.65 billion USD (2.15 billion CAD), MedMen will become the largest U.S.-based cannabis company by market value. It also becomes approximately 5-times larger than TerrAscend, currently the largest valued company on the CSE. Surprisingly, this is mostly being accomplished under-the-radar, as the company has little Canadian footprint at the moment.
Right now, Medmen operates eighteen facilities stateside, with retail operations in three states totaling 800 employees. The Company currently owns the operations of four operational dispensaries in
California, serving both recreational and medical marijuana customers; one operational dispensary in Nevada, serving both recreational and medical marijuana customers; and four medical-only based dispensaries in New York. Medmen is also actively engaged in opening up additional dispensaries in California, Illinois and Massachusetts.
Given Medmen’s relatively modest portfolio which includes a 45,000-square-foot greenhouse and 12 retail locations, valuation appears quite lofty. It appears investors are betting that the company’s dispensary model (think Apple Store) will allow it to gain market share and command a premium price for its offerings.
This strategic trajectory is plainly viewed on Medmen’s website. Under the “What We Do” section, the company declares that “We do not run pot shops, we manage class leading retail stores that happen to sell marijuana and marijuana products.” From this description, it seems patently obvious the company is selling a consumer experience first, cannabis second. This strategy also seems geared towards millennials and Generation “Z”ers, who tend to save less and spend more on premium services