California-based MedMen Enterprises said Monday it is exiting the Florida medical cannabis market with the sale of its business license and all its assets for $83 million.
The move significantly shrinks the multistate operator’s national footprint.
According to a news release, MedMen sold all its MMJ assets in the state to Fort Lauderdale, Florida-based Green Sentry Holdings in an all-cash deal that includes the company’s seven dispensaries, its cultivation operations and existing inventory.
As part of the deal, MedMen agreed to license its trademarks to Green Sentry for two years.
MedMen currently lists dispensaries in Fort Lauderdale, Miami Beach, Orlando, Pensacola, St. Petersburg, Tallahassee and West Palm Beach, according to the state Office of Medical Marijuana Use.
The company owned only a fraction of the state’s 400 dispensaries.
The sale and pivot are part of a new MedMen strategy that CEO Michael Serruya referred to as “asset-light.”
“Our go-forward strategy is going to include an asset-light model that enables us to leverage the power and strength of the MedMen brand,” Serruya said in a statement.
He added that he’s “confident” the move will position the company solidly for future growth.
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Serruya also noted that MedMen will continue looking for more “trademark licensing opportunities” across the industry.
The exit from Florida leaves MedMen with marijuana operations in Arizona, California, Illinois, Massachusetts and Nevada.