On June 6, MedMen Enterprises (MMNFF) (MMEN) announced that it entered an agreement to acquire a 100% stake in MattnJeremy, which operates One Love Beach Club. One Love is located in Long Beach, California. The acquisition will expand MedMen’s footprint in California with the addition of a premier location, which is strategically located between MedMen’s Santa Ana and LAX locations.
MedMen will be paying $13 million, which includes $10 million in Class B subordinate voting shares, $1 million in cash, and $2 million in deferred cash to One Love. MedMen expects the deal, which is subject to approval from local and state authorities, to close in 45 days. In a statement, Adam Bierman, CEO of MedMen, stated, “We’re excited to welcome Long Beach to the MedMen family and continue our growth in the most important cannabis market in the world,” as reported by Business Wire.
Today, MedMen also announced that it had received one of the six commercial retail and delivery licenses granted by the City of Pasadena, raising its total retail licenses in California to 14.
MedMen was trading in the green in today’s early morning trade. However, YTD, MedMen’s stock price has fallen by 28.3%. The weakness in the broader equity market due to the renewal of the trade war between the US and China and the skepticism expressed by the FDA Commissioner Ned Sharpless over the usage of THC and CBD in foods and dietary supplements and other consumer products caused MedMen’s stock price to fall. The company’s stock price was also negatively impacted by the lawsuit filed by its former CFO James Parker, alleging financial irregularities.