MedMen Just Became The Biggest Cannabis Company In The US

U.S.-based cannabis company MedMen Enterprises Inc MMNFF said its $682 million acquisition of PharmaCann will make it the "largest U.S. cannabis company in the world's largest cannabis market."

What Happened

MedMen said Thursday it reached an agreement to acquire the medical cannabis company in what's considered to be the biggest M&A deal to date within the legal marijuana industry. The combined entity will result in MedMen doubling the number of states where it has a license to operate in to 12, which boasts an estimated market valued at $40 billion in 2030.

Why It's Important

MedMen CEO and co-founder Adam Bierman said in a press release the acquisition would have not likely been possible just two years ago and serves as a "testament to how far both the industry and these two companies have evolved."

The strategic rationale for the deal is five-fold, MedMen said:

• The creation of a national footprint and ability to leverage its national brand equity.
• The ability to accelerate and distribute the launch of its in-house brand.
• A strengthened positioned to capitalize on growth initiatives.
• Revenue synergies.
• Add credibility to MedMen's recreational-focused business.

"This acquisition validates the dedication and level of sophistication we have used to provide consistent patient outcomes," said Teddy Scott, Ph. D., PharmaCann CEO.

What's Next

PharmaCann investors will own around 25 percent of the new entity, which remains subject to standard regulatory approvals among various local and state authorities.

MedMen's OTC stock was trading around $4.50 at time of publication, up 6.5 percent.

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