MedMen has been faltering on capital raises
One of the big cannabis business stories of 2018 has been the move to the public markets by some of the leading multi-state cannabis operators in the United States, a trend that is likely to accelerate following the signal in mid-April from President Trump that he favors a federal policy that respects the rights of states to regulate cannabis production and consumption. While they aren’t the first to do so, California-based MedMen Enterprises and Chicago-based Green Thumb Industries (GTI), which both have gone public over the past three weeks by listing on the Canadian Securities Exchange (CSE), are the largest in terms of market caps. Both companies have large and growing revenues and a large footprint across the country.
MedMen, which has operations in Southern California, Nevada, New York and soon Florida, first began discussing publicly its plans to go public in January. Just prior to going public, it raised a massive C$143 million at C$5.25 per share. This was more than double what the company had been seeking in the capital raise initially. It began trading on May 29th, and the price opened slightly higher at C$5.63 before plunging over the next few days to as low as C$3.43. It has rallied subsequently, but, at C$4.69 as of June 15th, its investors in its last capital raise are down almost 11%.
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