MedMen Enterprises Inc., a Culver City-based cannabis company that went public last month, has agreed to pay $53 million to acquire a pot nursery and its medical marijuana licenses in Florida.
The eight-year-old cannabis company announced June 6 it signed an agreement to acquire the dispensary and cultivation assets of Treadwell Simpson Partnership, also known as Treadwell Nursery.
The $53 million deal included the nursery’s 5-acre cultivation facility in Eustis, Fla., and the right to open 25 medical marijuana dispensaries in the state.
“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,” said Adam Bierman, co-founder and chief executive for MedMen, in a statement. “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 operates upscale pot boutiques from Santa Monica Boulevard to Fifth Avenue, with 18 licensed cannabis facilities in cultivation, manufacturing and retail in California, New York and Nevada.
The eight-year-old cannabis company went public May 29 on the Canadian Securities Exchange through a reverse merger with Ladera Ventures Corp., raising $110 million through a private placement. The public company, renamed MedMen Enterprises Inc., was valued at $1.65 billion.
Since the offering, MedMen shares have fallen to $2.79 as of end-of-day June 7, a 36 percent drop from its opening price of $4.35.
Health business reporter Dana Bartholomew can be reached at firstname.lastname@example.org. Follow him on Twitter @_DanaBart.