Cannabis penny stocks have been experiencing gains since Constellation Brands (NYSE:STZ) announced its massive $4 billion further-investment into Canopy Growth Corp (TSX:WEED) last week.
So it seems confidence may be spreading across the industry!
One cannabis brand that falls on the somewhat higher-end of the penny stocks spectrum, is MedMen (CSE:MMEN). This is a stock currently in the green and it’s not hard to see why this stock is promising, so let’s take a look.
Cannabis Penny Stocks: MedMen (CSE:MMEN)
MedMen is a US-based company that is actually listed on the Canadian Securities Exchange and its primary focus is cannabis retail.
Currently, it operates in three states of the US: California, Nevada, and New York. The company’s retail stores sell marijuana and marijuana-related products.
But what makes MedMen different?
California
The first thing to know about this stock is a rather impressive feat which puts the company in a class of its own.
Within the state of California—which ranks as the biggest cannabis market in the world—MedMen recently reported that it took in around 6% of the total retail marijuana and marijuana-related product sales during Q2.
California is expected to reach marijuana sales of $7.7 billion by 2022 and with that in mind, if MedMen can keep up this sales percentage, that means it could be accruing a $462 million net from sales in that state alone.
Of course, for now, it remains to be seen, but the prospects are promising.
Expansion
Wherever legalization moves, MedMen looks like it will follow, with planned expansions into Florida—where medical marijuana is legal—along with Massachusetts where both medical and recreational use is now legal.
Looking at Florida particularly, this state is predicted to be the 3rd biggest marijuana buying state in the US by 2022. So again, MedMen is putting itself in important spaces.
>> BlueBird to Commence Drilling at its Canegrass Project in Western Australia
Also, it’s Nevada store is located in downtown Las Vegas, a tourism mecca with nearly 40 million visitors yearly.
That can only mean a lot of visitors to its stores.
Canada and Joint Ventures
Aside from its listing on the CSE, MedMen made another tie to Canada in March with a joint venture with Cronos Group.
The plan?
Eager to enter the Canadian recreational market, the two companies will develop cannabis-branded products and launch a new line of cannabis retail stores throughout Canada.
MMEN Stock
MMEN stock has been jumping around a bit today, indicating that it’s being talked about it. The market is about to close and MedMen looks like it will remain in the green.
By making moves in the right spaces, is it any surprise cannabis penny stocks are in the green?
Feature Image: MedMen
