MedMen Enterprises Inc (CNSX:MMEN) Acutely Benefits As Michigan Cannabis Ballot Passes
With the electorate voting on several state cannabis provisions on Tuesday, MedMen Enterprises Inc (CNSX:MMEN) (OTCMKTS:MMNFF) (FRA:0JS) comes out among the U.S. sector’s biggest corporate beneficiaries. The company can thank wolverine voters for that, as cannabis will soon be legal for adult-use consumption in-state.
A ballot measure to legalize cultivation and sales passed rather comfortably last night, virtually guaranteeing Michigan will become the next fully legal state in the coming days. Obviously, this news is a boon for all burgeoning operators in the state. As U.S. regulatory and legislative ace, Tom Angell, reports via Forbes:
The measure will allow adults over 21 to possess, grow and use small amounts of marijuana legally. Those provisions are set to take effect within 10 days of the vote being certified, which should be soon, meaning that cannabis is expected to become legal in the state this month.
While the race to extend tentacles into Michigan has officially begun, few exchange listed operators have any business dealings there. Due to cannabis’ previously illegality and disclosure rules, it wasn’t possible for a public company to hold a state license.
However, such obstacles did not affect PharmaCann LLC, a vertically-integrated private medical cannabis provider with operations in several states. One of which is located in Michigan, which according to the press release announcing MedMen’s acquisition with PharmaCann LLC last month, “…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.”
According to the PharmaCann website, the company owns one dispensary in Michigan (more to come in 2019) and one production facility currently. This will all be in MedMen Enterprises hands soon, assuming the transaction closing occurs on schedule.
The net result is that MedMen could be the first exchange-listed cannabis operators to have a brick & mortar presence in-state—while its competitors scramble to equalize. Such an outcome would be highly advantageous for a company known for its branding emphasis and prowess.
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