MedMen Doubles Market Reach With Acquisition Of PharmaCann

CALIFORNIA: MedMen Enterprises Inc. and Chicago-based PharmaCann have signed a binding letter of intent for MedMen to acquire PharmaCann in an all-stock transaction valued at $682 million.

The resulting pro-forma company (including pending acquisitions by MedMen) will have a portfolio of cannabis licenses in 12 states that will permit the combined company to operate 79 cannabis facilities. The combined company will operate in 12 states, which comprise a total estimated addressable market, as of 2030, of approximately $40 billion according to Cowen Group. Through the transaction, MedMen will add licenses in Illinois, New York, Pennsylvania, Maryland, Massachusetts, Ohio, Virginia and Michigan.

medmen“This is a transformative acquisition that will create the largest U.S. cannabis company in the world’s largest cannabis market,” said Adam Bierman, MedMen’s chief executive officer and co-founder. “The transaction adds tremendous scale to our vertically integrated business model by expanding our U.S. retail footprint across important growth markets while strengthening our cultivation and production capabilities. With the revenue synergies that the deal is expected to produce, MedMen is well positioned to continue executing on our growth strategy. This would not have been possible even two years ago and is a testament to how far both the industry and these two companies have evolved. PharmaCann’s leadership has built a world-class organization, and we are excited about the value this transaction is creating for shareholders.”

Founded in 2014, PharmaCann is one of the largest medical cannabis providers in the U.S. It currently operates 10 retail stores and three cultivation and production facilities across multiple states, including New York, Maryland and Massachusetts, and in Illinois, where it is the largest holder of medical cannabis licenses. The company also owns licenses for retail stores in Pennsylvania, Maryland, Massachusetts, Ohio, Virginia and Michigan, and cultivation and production licenses in all of its markets, excluding Maryland. PharmaCann is known for its high-quality cultivation and production and has one of the best track records in the industry for cannabis license applications.

“PharmaCann has built highly-efficient cultivation centers and dispensaries to promote a better quality of life for medical marijuana patients,” said Teddy Scott, Ph. D., PharmaCann chief executive officer. “This acquisition validates the dedication and level of sophistication we have used to provide consistent patient outcomes. I am proudest of the top-notch team we have assembled here and their dedication to our mission of serving medical marijuana patients. Our organization is a natural fit for MedMen, and we are excited to join a leading enterprise with a best-in-class management team.”

MedMen currently operates 14 retail stores in the primary markets of California, Nevada and New York. The Company recently acquired a license to open and operate 30 retail stores in Florida and has signed binding agreements to acquire an operating retail store in Illinois, cultivation and retail operations in Arizona, and an additional non-operating retail license in California. The Company has cultivation and production facilities in Nevada and New York, and is building facilities in Desert Hot Springs, California and outside Orlando, Florida. PharmaCann is licensed for 18 retail stores in eight states and eight cultivation and production facilities in seven states. Combined, the two companies will be licensed for 66 retail stores and 13 cultivation and production facilities (including pending acquisitions by MedMen).

The Wink In Weed: CannaFest Destiny Takes MJBA To Las Vegas

MJBA Expands National Footprint, Relocates HQ To Silver State

By David Rheins

This summer I undertook a cross-country, coast-to-coast, “CannaFest Destiny” road show. Sponsored by Curved Papers, the MJBA tour made ‘official’ stops in Washington, Oregon, Nevada, Indiana, Massachusetts and New York. We gathered in small groups and large, hosting meetups, participating in panel discussions, exhibiting and speaking at trade shows, investor summits and Hempfests. We exchanged ideas, shared our dreams and committed to working together to build a truly sustainable, profitable and ethical legal industry.

The MJBA held court at Indianapolis’ oldest political venue, the storied Antelope Club, where alongside Hoosier Veterans for Medical Cannabis and the Indiana Chapter of the Libertarian Party, where we discussed ways that Hoosiers can participate in the Cannabis and Hemp revolution today.

The CannaFest Destiny Tour generated excitement and positive press – in local newspapers and radio, on podcasts, through Facebook feeds and social media – opening eyes and making new allies and friends all along the way.

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Having spent much of the past 5 years working to build the legal cannabis industry in the Pacific Northwest and Colorado, it has been exciting for me to witness CannaFest Destiny at work: how each new state and local community is incorporating and modifying best practices from Washington, Colorado and Oregon to create a unique legal marketplace tailored to the needs and sensibilities of the local culture.  While laws, rules and regulations vary widely, I found a common spirit of community and cooperation and commitment to building a fair and responsible industry.

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Nowhere did I witness more radical change in such a short time as Nevada.  It has not been too many years ago that possession of a seed or stem in the Silver State would get you 20 years, and trafficking could earn you life behind bars.  Today, Las Vegas is home to the biggest of the industry trade shows (though recently the Casino and Gaming Commission has discussed banning the legal cannabis industry from Casinos) and nearly 150 licensees grow, process and sell some very fine cannabis.

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The state passed its medical marijuana initiative in 2000, and its recreational initiative in 2016.  Adult use sales began on July 1st and since that time Nevada has outpaced the launch of both the Colorado and Washington markets.  With 42 million tourists visiting annually, Las Vegas is ground zero for the next wave of the legal market, heralding in the era of Commercialization and Normalization. Demand has challenged supply, overwhelming a short-lived monopoly by the alcohol distributors and causing major bottleneck. Pains of growth are inevitable and signs that legalization, once the exclusive province of the liberal West Coast, has now reached the mainstream. Las Vegas is where America (and the world) comes to play – and the players want their legal weed.

True to our mission to provide reliable business intelligence, professional networking and business opportunity to participants in legal cannabis, the Marijuana Business Association has decided to relocate its HQ to Las Vegas.  An ideal location to service the expanding national footprint of the MJBA, Las Vegas offers cheap and easy travel, amazing entertainment venues and one of the fastest-growing legal cannabis marketplaces in the world.   In addition to hosting meetups and professional education events, we will be in a better position to support our growing MJBA Chapters in Oregon, California and Washington, while simultaneously growing our presence on the East Coast – expanding MJBA New York and launching MJBA Boston.

MJBA is Amazing

We’re taking on new partners, and soon will be unveiling a more robust suite of member benefits, including meaningful discounts on the industry’s most important trade events and media opportunities, a new b2b technology platform, and exclusive members-only invitations. Stay tuned to this space!