Count California-based MedMen as the newest U.S. marijuana firm wanting to Canada to increase cash.
The administration and funding firm, which operates dispensaries and manufacturing amenities in California, New York and Nevada, plans to go public in Canada later this yr, CNBC reported.
The firm will record its shares on the Canadian Securities Exchange (CSE).
The transfer into Canada will “add jet fuel” to MedMen’s growth technique, firm spokesman Daniel Yi informed Marijuana Business Daily.
“You are opening access to investors globally,” he stated.
In going public in Canada, MedMen follows in the footsteps of New York-based iAnthus Capital Holdings, Denver-based International Cannabrands and Alternate Health, which is headquartered in Texas.
Those three corporations are traded on the CSE, which permits issuers to do enterprise in the United States offered they meet danger disclosure necessities. (The United States stays off-limits for corporations listed on Canada’s two largest inventory markets, the Toronto Stock Exchange and Venture Exchange.)
MedMen is at present in a bridge financing stage and plans to listing its shares in the early second quarter.
The firm has the potential to be one of many largest listings on the CSE.
Toronto funding firm Captor Capital (CSE: CPTR) signed a letter of intent this week to buy three% of MedMen for $30 million, which might worth MedMen at roughly $1 billion.
Yi stated MedMen’s technique includes constructing companies from the bottom up. Going public in Canada will give the corporate extra assets to purchase licenses.
“In order to purchase those licenses and turn those dispensaries into MedMen-branded unique retail concepts requires capital, and that’s what going to Canada allows us to do,” Yi stated.
Alternate Health, iAnthus and International Cannabrands are traded on the CSE beneath the symbols AHG, IAN and JUJU.A, respectively.
Matt Lamers could be reached at [email protected]
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