When US licensed producers wait on legalization proposals to make their way by means of different state legislatures about the nation, expansion in California continues at a breakneck pace.
These days, 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 web page.
MedMen’s Chief Executive Officer Adam Bierman commented on the newly completed acquisition:
MedMen continues to expand its footprint in California, the most crucial cannabis marketplace in the planet. With this most recent acquisition, we broaden our attain and capitalize on considerable development possibilities in the state.
Recreational marijuana was legalized in California back in 2016 with the voter led initiative Proposition 64, and retail sales started early final year following regulations set down by the state’s Bureau of Cannabis Manage.
When expanding, carrying, and consuming marijuana is legal across the state, numerous person cities have placed restrictions on the quantity of licenses for retail dispensaries. That is the case with Seaside, California, which has at the moment only offered six licenses to cannabis firms in the city – one particular of which is Sugarleaf Trading Co.
A wide variety of California acquisitions have been announced in current months as company’s capitalize on one particular of the biggest states to legalize each health-related and recreational use cannabis.
Yesterday, Cresco Labs Inc. (CSE: CL OTCQX: CRLBF) entered an agreement to obtain California corporation Origin Residence for $1.1 billion, which will represent one particular of the biggest cannabis offers in the state if authorized by shareholders.
When 2020 US Presidential campaign rhetoric about de-criminalizing or completely legalizing cannabis heats up, for the moment the sector is spread across a hodgepodge of states split in between each health-related and recreational adult-use markets.
With Sugarleaf now beneath the company’s banner, MedMen currently operates 32 cannabis retailers in 12 states, with an added 30 permitted in Florida and gearing up to open. MedMen’s subsidiary Pharmacann is also now licensed to open nine health-related marijuana dispensaries in Pennsylvania.
MedMen’s growth with new acquisitions is at the moment getting fueled by a $100 million investment from California equity group Gotham Green Partners. That investment is set to incorporate two future tranches of $75 million apiece spaced out at six month intervals to retain the corporation afloat more than the coming year.