Further solidifying the company’s hold on home base operations in California, MedMen Enterprises Inc just closed on another retail location in Long Beach.
After an agreement was initially struck back in June, MedMen has now officially acquired MattnJeremy Inc, more commonly known under the d/b/a name of One Love Beach Club.
The cash-and-stock deal is valued at $13 million, with $1 million paid in cash today on closing, and an additional $2 million held as deferred cash.
Situated on E Broadway in Long Beach, this latest California acquisition will serve customers between the company’s existing LAX and Santa Ana dispensary sites.
Taking over One Love Long Beach bumps up MedMen to a total of 13 stores now open in the state, with licenses in hand for another four to open in the near future.
Aside from directly serving walk-in customers, One Love Beach Club will also take part in MedMen’s flagship California delivery service, which kicked off late last month, as well as utilizing the new loyalty program MedMen Buds.
While the company’s home state remains a strong focus for operations in light of statewide recreational legalization, MedMen has also grown on a multi-state front in recent months, and is now operating in Arizona, Florida, Illinois, Massachusetts, Nevada, and New York.
The expansion of medical cannabis in Florida saw MedMen opening a new dispensary in West Palm Beach earlier this summer.
Despite new store openings and an influx of capital from Gotham Green Partners to continue operations, the company stock has been treading water in recent months and holding steady at around $2.00 a share.
That current price marks a clear decline from the $3.47 a share MedMen commanded back in early January, and is down sharply from the all-time high price of $6.49 nearly a year ago in October of 2018.
Larger scale U.S. and Canadian licensed producers have all struggled with dwindling stock prices in the last 12 months, and are increasingly looking towards international expansion for new revenue sources.