Multistate marijuana retailer MedMen seeks to raise $74 million

0
87

Multistate marijuana retailer MedMen seeks to raise $74 million

Los Angeles-based MedMen Enterprises, one of the most high-profile cannabis retailers in the United States, said Friday it plans to raise a total of $74 million by selling noncore assets and initiating a stock offering. MedMen anticipates raising $54 million by selling marijuana licenses it views as noncore assets in Arizona and Illinois, its latest cost-cutting move. In addition, MedMen expects to raise $20 million by offering class B shares at 43 cents each.

Initially, MedMen planned a $27 million offering but downsized in order to limit dilution of existing shareholders. Proceeds will be used to finance working capital and to expand the company’s retail footprint in its core markets.

For analysis and in-depth looks at the investment trends and deals driving the cannabis industry forward, sign up for our premium subscription service, Investor Intelligence.

Massachusetts recreational cannabis sales top $420 million in first year

Adult-use marijuana stores in Massachusetts had more than $420 million in sales in the first full year of legalization, according to the state’s Cannabis Control Commission. December sales, even before Christmas, hit $10.7 million. The data will be updated in January to show the entire 2019 calendar year.

– Associated Press

Ohio’s medical marijuana program continues to grow in first year

A year after legalizing medical marijuana, Ohio has 46 MMJ dispensaries, with another dozen planning to open, and more than 400 applicants sought licenses for dispensaries, the Dayton Daily News reported. According to the newspaper, Ohio dispensaries have sold 5,925 pounds of plant material and 236,008 units of products such as edibles, patches and oils to be vaped, based on the most recent data.

Threats to adult-use California marijuana sales dire

Business threats against legal cannabis stores California are so severe that it may be necessary for voters to address some of the issues at the ballot box, according to the annual draft report of the Cannabis Advisory Committee, which was obtained by the Los Angeles Times. State officials may need consider “revisiting the ballot initiative,” to address issues facing the industry, the newspaper reported. Problems facing adult-use marijuana retailers in California include:
High taxes.
Burdensome regulations.
Black market competition.
• The fact that 75% of the cities in the state still ban the sale of recreation MJ.

Top Massachusetts’ court doesn’t rule on cannabis vape ban

The Supreme Judicial Court in Massachusetts declined to consider whether Republican Governor Charlie Baker’s administration overstepped its executive powers in temporarily banning the sale of nicotine and marijuana vaporizers, the Boston Globe reported. The products are now back on store shelves in the state.

For more of Marijuana Business Daily’s ongoing coverage of the vaping crisis, click here.