Summary
MedMen is by far the largest publicly-traded U.S.-based cannabis company by market capitalization.
Performance since IPO has been lackluster compared to other recent IPOs such as Green Organic Dutchman and Tilray.
Unique business model compared to Canadian licensed producers allows vertically integrated operation but operating expenses are burdensome.
MedMen Canada JV with Cronos unlikely to capture large market in Canada and focus remain in the U.S.
Welcome to our Discover Cannabis series, where we publish in-depth research to introduce new cannabis companies to our coverage.
Overview
MedMen Enterprises (OTCQB:MMNFF) has been called the “Apple Store” in cannabis due to its sleek retail design and unique shopping experience that aims to make consumers feel safer while shopping marijuana. The company operates in 4 U.S. states and has announced a Canadian joint venture with Cronos (CRON) to operate retail stores in provinces that allow private retail operators. We think MedMen has captured an early mover advantage by establishing itself as the well-known cannabis brand and it is aggressively executing on its retail footprint expansion. The retail operations remain unprofitable and cash flow will remain negative in the near-term as the company invests in physical retail locations and marketing efforts. We think MedMen will become an important player in the U.S. cannabis market.
Credit: seekingalpha.com
