MedMen Looks to Head North Like Other U.S. Cannabis Companies

California-based private cannabis company MedMen plans to go public on the Canadian market during the second quarter of 2018. Last quarter the company announced they were looking for a partner for a reverse takeover in place of an IPO. Recently Canada-based Captor Capital (CSE:CPTR) (OTC:NWURF) signed a Letter-of-Intent with the company to acquire a three-percent stake for $30 million, upping their valuation to a cool $1 billion. Many outlets, such as The Green Market Report, are calling MedMen cannabis’ first “unicorn” company.  

According to the Marijuana Business Journal, for MedMen to pursue their strategy of acquiring more business licenses, going public is the next logical step.

The company has around $150 million split between two funds, set aside for investments in the cannabis sector. CNBC reports that these assets were set aside in MedMen Enterprises to prepare for the reverse takeover and move to the alternative Canadian Securities Exchange (CSE). The article goes on to further say that company co-founder Andrew Bierman anticipates the acquisition to take place sometime in the second quarter of 2018.

Heading North

The multi-state cannabis company is joining other American companies in the industry by listing on the Canadian Securities Exchange, such as iAnthus Capital Holdings (CNSX:IAN), International Cannabrands (CNSX:JUJU.A) and Alternate Health (CSE:AHG)

With the pending legalization of recreational adult-use cannabis across the border, a number of American marijuana companies are looking towards the freedom of the Canadian market.  Industry insiders point to increased regulatory restrictions and fear of federal government interference as the primary reason a number of American companies are looking to list on international stock exchanges instead of at home. They are focused on markets like Canada which have the federal government’s support and are "420-friendly”.

The MedMen Design

MedMen is known for creating a sleek open concept cannabis dispensary. They moved away from the hippie-styled pot shops of yore to attract a diverse clientele. MedMen is a popular name in the U.S. cannabis industry.  The company which has been in operation since 2010, currently has 700 employees with operations in Southern California, Nevada, and New York.

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