In yet another signal that high-end investors are getting more comfortable with throwing serious money at the cannabis industry, marijuana management firm MedMen has announced that it secured $3.75 million in private funding to aid its national expansion.
According to a report from Fortune, MedMen garnered the bulk of the cash from healthcare investing company NSquared, with less than a third of the funding coming from other individual investors. MedMen contends it’s the “largest-ever investment in a cannabis management company,” according to the Fortune story.
NSquared President Fred Portnoy said his company had been looking for about a year to get into the MMJ business in one way or another, and finally decided it would be easier to invest in a management company instead of trying to start a dispensary.
MedMen also recently announced a new partnership with marijuana cultivator and edibles manufacturer G FarmaLabs. Both companies are based in California, and both are hoping to branch out into the upcoming medical marijuana markets in Nevada and Illinois, which is where their partnership will be in effect. MedMen also operates in several other states, including Massachusetts and Florida.
The development is welcome to other cannabis companies hoping to build a brand outside their home territory. That’s already happening in many MMJ markets and will probably continue as a national trend, especially with the new recreational marijuana states of Oregon and Alaska.