Count California-based MedMen as the latest U.S. marijuana company looking to Canada to raise money.
The management and investment firm, which operates dispensaries and production facilities in California, New York and Nevada, plans to go public in Canada later this year, CNBC reported.
The company will list its shares on the Canadian Securities Exchange (CSE).
The move into Canada will “add jet fuel” to MedMen’s growth strategy, company spokesman Daniel Yi told Marijuana Business Daily.
“You are opening access to investors globally,” he said.
In going public in Canada, MedMen follows in the footsteps of New York-based iAnthus Capital Holdings, Denver-based International Cannabrands and Alternate Health, which is headquartered in Texas.
Those three companies are traded on the CSE, which allows issuers to do business in the United States provided they meet risk disclosure requirements. (The United States remains off-limits for companies listed on Canada’s two largest stock markets, the Toronto Stock Exchange and Venture Exchange.)
MedMen is currently in a bridge financing stage and plans to list its shares in the early second quarter.
The company has the potential to be one of the biggest listings on the CSE.
Toronto investment company Captor Capital (CSE: CPTR) signed a letter of intent this week to purchase 3% of MedMen for $30 million, which would value MedMen at roughly $1 billion.
Yi said MedMen’s strategy involves building businesses from the ground up. Going public in Canada will give the company more resources to acquire licenses.
“In order to purchase those licenses and turn those dispensaries into MedMen-branded unique retail concepts requires capital, and that’s what going to Canada allows us to do,” Yi said.
Alternate Health, iAnthus and International Cannabrands are traded on the CSE under the symbols AHG, IAN and JUJU.A, respectively.
Matt Lamers can be reached at firstname.lastname@example.org