MedMen Enterprises Inc (CNSX:MMEN) announced on Friday that the company would be expanding into Florida as it opened a store in West Palm Beach. It’s looking to add more locations, including in Key West and Orlando as well.
It’s proven to be a lucrative market for the medical marijuana segment as rival Trulieve Cannabis Corp (CNSX:TRUL) has opened dozens of locations in the State and has produced great results focusing on a state that is home to many seniors and patients.
However, where MedMen believes it can add value is for those that are unfamiliar with cannabis and that need a little guidance.
Nick Hansen, director of government affairs for MedMen for the Florida region stated that "Our research shows many patients in Florida feel they need guidance when they walk into a dispensary. As we expand patient access to the benefits of cannabis, our goal is to help educate our customers before they buy."
The company has been known for its Apple-like locations that have a comfortable feel to them with staff ready to help and assist with purchases. It has proven to be effective and has made MedMen one of the most popular and iconic cannabis brands in the country.
It’s a big move for the company but it’s going to be a hotly contested market given the potential that exists there there.
Despite the announcement, however, MedMen investors were not excited by the news as the stock was down by more than 5% in trading on Friday morning.
Year to date, the stock has fallen 25% as MedMen has faced no shortage of scandals, departures and poor-performing results along the way. It may be a sign that investors are looking for more than just growth, especially given the company’s problems burning cash period after period.
