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California Cannabis Firm MedMen Doubles Market Reach with USD 682m Acquisition of PharmaCann
Friday 12 October 2018

12 October 2018 - California, US-based cannabis company MedMen Enterprises Inc. (CSE: MMEN) (OTCQB: MMNFF) (FSE: A2JM6N) and Illinois, US-based PharmaCann LLC have signed a binding letter of intent for MedMen to acquire PharmaCann in an all-stock transaction valued at USD 682m, the companies said.

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.

MedMen said the combined company will operate in 12 states, which comprise a total estimated addressable market, as of 2030, of approximately USD 40bn according to Cowen Group.

Through the transaction, MedMen will add licenses in Illinois, New York, Pennsylvania, Maryland, Massachusetts, Ohio, Virginia and Michigan.

Founded in 2014, PharmaCann is one of the largest medical cannabis providers in the US.

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.

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.

MedMen 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).

MedMen Enterprises is a cannabis company in the US 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.

PharmaCann, one of the nation's largest medical cannabis providers, cultivates, processes and dispenses independently tested cannabis products.

The company's dispensaries, called Verilife, and production facilities, called Veriplant, are operating in multiple states including Illinois, Maryland, Massachusetts and New York, with other locations in development including Michigan, Ohio, Pennsylvania and Virginia.
Date Published: 12/10/2018
Target: PharmaCann LLC
Country: USA
Deal Size: 682m (USD)
Sector: Wholesale/Retail
Type: Corporate acquisition
Financing: Stock
Status: Agreed
Buyer: MedMen Enterprises