MedMen Enterprises Inc. (CSE: MMEN) a United States based cannabis retail and distribution company announced this week that the company has signed a agreement to acquire dispensary and cultivation licenses from Florida based Treadwell Simpson, or better known as Treadwell Nursery.
Under the terms of the agreement MedMen will acquire Treadwell Nursery’s 5 acre cultivation facility in Eustis, Florida and the rights to open 25 medical marijuana dispensaries in the State of Florida in exchange for $53 million dollars. The $53 million will be split half in cash and half in common shares of MedMen Enterprises, which was recently just listed on the Canadian Stock Exchange in hopes to expand the company’s operations to the country which is one of the largest markets involved in the sector.
MedMen has been rapidly expanding its cultivation, manufacturing, and retail operations in legal recreational states such as California, Nevada, and New York. The company employs over 800 workers and aims to continue to setup retail cannabis shops throughout the country.
The transaction is expected to close within 90 days and is subject to customary closing conditions, including receipt of state regulatory approvals. If certain regulatory approvals are not obtained, the Company and Treadwell Nursery will have the right to terminate the Agreement.