In preparation for the upcoming cannabis legalization in Canada, licensed producer Cronos Group Inc. (TSX-V:CRON) has formed a cross-border joint venture with MM Enterprises USA LLC, a leading U.S. cannabis company with facilities in California, Nevada, and New York. The JV, which will be named MedMen Canada Inc., will develop branded products and open stores across Canada. Recently, Cronos Group Inc. became the first pure-play cannabis company to be listed on a major U.S. stock exchange: the Nasdaq.
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MM Enterprises is currently the largest cannabis retail chain in California, where cannabis for adult use was legalized recently. It owns and operates factories and stores in three states and anticipates going public in Canada in the second quarter of this year. Cronos operates two wholly owned licensed producers under Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR): Peace Naturals Project Inc. and Original B.C. Ltd.
“MedMen Canada will give us entry into an important emerging market for adult-use and broaden our exposure worldwide,” said MM Enterprises CEO and co-founder Adam Bierman. “We always take a very disciplined and focused approach to our growth, and it was important that we find the right partner for our expansion into Canada. Cronos has been a leader in the Canadian medical cannabis space, and their international track record makes them the perfect partner. They have the right infrastructure and expertise to successfully execute this venture.”
“Cronos is focused on changing the perception of cannabis on an international scale, and we prioritize working with best-in-class partners who share our vision for the future. MedMen stores have been integral to mainstreaming cannabis, and they have become one of the most well-known and respected cannabis platforms in the United States. We’re very excited to bring the MedMen experience to Canada,” said Cronos CEO Mike Gorenstein.
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Following today’s JV announcement, Cronos shares jumped by 12.4%, now trading at $11.50 as of market close. The company’s stock more than doubled for the past three months and increased nearly five-fold, year to date.
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