A major shakeup for the landscape of Florida’s legal marijuana business.
In the state of Florida, acquiring a marijuana business license is no small feat—there are only thirteen such licenses available to prospective businesses. However, once one acquires said licensing, it opens up a vast amount of opportunities to open an array of dispensaries throughout the state. This makes such an opportunity appealing to a marijuana company with the necessary capital and resources to open up a slew of medical dispensaries in the area.
That’s why, it should come as no surprise that, today, one the country’s biggest cultivators, producers, and retailers of cannabis, MedMen, has managed to acquire one of Florida’s thirteen precious MMJ licenses.
MedMen Acquires One Of Florida’s Thirteen Marijuana Licenses
According to the company’s press release, MedMen is set to acquire all dispensary and growing assets from the Florida-based cultivation company, Treadwell Nursery, which was one of the first eight businesses to acquire an MMJ license from the state.
As it stands, MedMen will inherent Treadwell Nursery’s five-acre grow facility situated in Eustis, Florida, as well as the 25 dispensaries formerly owned and run by the company. MedMen Co-founder and CEO Adam Bierman said in the press release that his brand has been eyeing an expansion in Florida for nearly a decade.
“For nearly a decade we have been positioning ourselves to capitalize on enormous market opportunities like this,” said Bierman. “This acquisition is right in line with our strategy of establishing a presence early on in high potential markets with limited licenses and large populations. Florida is the third most populous state in the country with a medical marijuana market estimated to reach $1 billion in annual sales by 2020. MedMen has built the best-in-class brand, and we continue to invest in premium assets that solidify our dominant position in the most important cannabis markets in the world.”
The acquisition of Treadwell Nursey’s dispensaries more than doubles MedMen’s amount of cultivation and retail facilities—before the blockbuster deal, the company owned an operated 18 such provisions throughout New York, Nevada, and California.
According to the release, MedMen purchased Treadwell’s assets for $53 million, before the necessary capital adjustments. The transaction will become official after 90 days, after it official closes, and both parties have the right to terminate the agreement beforehand, provided the necessary regulatory approvals are somehow failed to be met.
MedMen recently went public in Canada with a billion dollar valuation. The company already has dispensaries in several states. Now, MedMen has the right to run 25 dispensaries in the sunshine state.