Last year, MedMen Enterprises Inc. (OTCMKTS
Robust revenue growth quarter-over-quarter
At the moment, MedMen Enterprises has operations in four states across the United States. In these states (New York, Nevada, California, and Arizona), total revenue amounted to $29.9 million. Interestingly, this is a 40% quarter-over-quarter increase since Q1FY2019. Further, the firm has inventory that is approximately $49.5 million.
It is clear that if the inventory gets acquired, the company report higher revenue in Q3FY2019. For the second quarter, the firm maintained a 54% gross margin across the retail operations. This is quite an increase compared to the 45% value in the previous quarter. However, all these are preliminary results, and the full results will be out anytime in February.
Interestingly, there is already an offer to acquire some MedMen inventory. In a statement, MedMen reported that Treehouse Real Estate Investment Trust is fundraising to acquire part of the inventory. Notably, the firm is already $133 million into the funding round, and it aims to raise more.
MedMen is after unlocking value to shareholders
According to MedMen CEO and Co-founder Adam Bierman, the capability of Treehouse to raise such an amount speaks volumes about cannabis market. As such, it is clear that people have confidence in the potential of the market to turn up revenues.
“MedMen’s relationship with Treehouse will allow us to unlock significant value for MedMen shareholders by spinning out our real estate holdings and deploying the proceeds into accretive growth opportunities for the Company,” said Bierman.
According to MedMen, the cannabis market will be worth over $75 billion by 2030. As firms look to expand their operations, they will need real estate infrastructure. Therefore, the firm is positioning itself strategically so that it can help to feed the expected demand. Further, the growth will continue to persuade more investors to put their money into the industry.