In what CNBC has called the “largest marijuana-related acquisition in U.S. history,” cannabis retail chain MedMen has bought out the medical marijuana vendor PharmaCann. The deal was done for $682 million, paid for in stocks.
The acquisition represents a marriage between major industry players on the West Coast and East Coast. MedMen has made a name for itself largely in California, where it has eight high-profile retail locations. The company also has two more stores in Nevada and another four in New York state. PharmaCann currently has dispensaries and production facilities in Illinois, New York, Maryland, and Massachusetts, and its website says it has plans to open more businesses in Michigan, Ohio, Pennsylvania, and Virginia.
When the historic acquisition is finalized, MedMen will have 66 licensed retail locations and 13 production facilities across 12 states.
MedMen CEO Adam Bierman told CNBC’s Jim Cramer that the company will continue to focus on markets in California, Nevada, and New York.
“Those are the markets where brands will be built, and as we look into expanding our footprint, the markets PharmaCann is in are the exact markets we were targeting,” Bierman said. “What this allowed us to do was leapfrog that next stage of our growth so we can just hunker down and focus on execution.”
As a leader in cannabis retail, Bierman’s projections for the company lay out what the future of the industry might look like. Namely, the increasing importance of branding, consolidation, and investment. The CEO said that he’s concentrating on “three buckets” of corporate strategy.
“We have the business that we’re building, which is MedMen. We have the industry that we’re building, which is cannabis. And then we have an asset class that we’re building,” he said. “On the asset class, we’re trying to build an asset class in cannabis that’s investable and accessible for retail investors all the way up to big institutions.”