Following a spate of scandals, Medmen Enterprises Inc (OTCMKTS:MMNFF) has managed to hold key support in the $2.75 area over the past month with clear resilience. This should be encouraging and suggest the potential for a contrarian rally if the direction of catalysts turns back in the bulls favor. On that note, the company just announced that it has completed the sale of two properties to Treehouse Real Estate Investment Trust, Inc. with gross proceeds of approximately $33.5 million and net proceeds of approximately $30.6 million after repayment of debt.
“This is our second transaction with Treehouse and we’ve now freed up nearly $49 million to invest directly into our growth initiatives,” said Adam Bierman, MedMen’s chief executive officer and co-founder.
Medmen Enterprises Inc (OTCMKTS:MMNFF) frames itself as a company that, together with its subsidiaries, operates in the cannabis space in the United States.
The company cultivates, produces, possesses, uses, and distributes/retails cannabis in the recreational and medicinal cannabis marketplace. As of June 6, 2018, it owned and operated 18 licensed cannabis facilities under the MedMen brand name in California, Nevada, and New York.
The company frames itself as “the preeminent cannabis company in the United States” with multiple assets and operations in California, Nevada, New York, and Florida. MedMen owns and operates licensed cannabis facilities in cultivation, manufacturing, and retail, and is one of the most well-recognized cannabis brands in the world today.
Headquartered in Los Angeles, MedMen employs more than 800 workers across the United States. It was founded in 2010 by Adam Bierman and Andrew Modlin, two visionary entrepreneurs who saw not just a tremendous business opportunity in the growing legalization of marijuana, but a chance to re-define our society’s relationship with cannabis. MedMen supports sensible, clear and just drug laws.
The Company is the single largest financial supporter of progressive marijuana laws at the local, state and federal levels, giving directly to pro-legalization groups, industry organizations and political candidates.
The company is headquartered in Culver City, California. MedMen Enterprises Inc. is a subsidiary of The Medmen Of Nevada 2 Llc.
According to company materials, “MedMen Enterprises is a leading cannabis company in the U.S. with assets and operations across the country. Based in Los Angeles, MedMen brings expertise and capital to the cannabis industry and is one of the nation’s largest financial supporters of progressive marijuana laws.”
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As noted above, MMNFF just announced that it has completed the sale of two properties to Treehouse Real Estate Investment Trust, Inc. with gross proceeds of approximately $33.5 million and net proceeds of approximately $30.6 million after repayment of debt.
Recent action has seen 4% during the past week in terms of shareholder gains in the listing. Furthermore, the company has registered increased average transaction volume recently, with the past month seeing 12% above its longer-run average levels.
According to the release, “The Las Vegas property is located on Highland Drive near the Las Vegas Strip. The store is scheduled to open later in calendar year 2019. The property is 10,417 square feet and will feature a 30’x70’ LED glass store front. It will be the Company’s largest store to date. Las Vegas ranks as one of the world’s most visited tourist destinations, with more than 42 million visitors in 2018, according to Statista. Nevada legalized adult-use sales in 2017 and revenue for calendar year 2019 are projected to exceed $600 million according to Cowen, Inc. MedMen currently operates three stores in Las Vegas.”
At this time, carrying a capital value in the market of $1.36B, MMNFF has about $12.2M in cash on the books, which must be weighed relative to a mountain of over $86M in total current liabilities. The company has been pulling in significant revenues, with over $7M in Q1 of this year, representing over 630% quarterly y/y growth on the top line. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $MMNFF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MMNFF, either long or short, and we have not been compensated for this article.