Cannabis Giants Join Forces in Cross Border Venture
TORONTO, March 19, 2018 /CNW/ – Cronos Group Inc. (Nasdaq: CRON) (TSX-V: CRON) (“Cronos” or the “Company”) – With Canada on track to legalize adult use of cannabis, two of the world’s largest cannabis companies announced a first-of-its-kind cross border joint venture today that could bring America’s most recognized cannabis brand to Canadian consumers by year’s end.
MM Enterprises USA, LLC (“MedMen Enterprises”), a leading U.S. cannabis company with facilities in California, Nevada, and New York, entered into an agreement with Cronos Group, a Canadian licensed producer and distributor of medical cannabis. Cronos, which also has a footprint in Germany, Israel, and Australia, recently became the first pure-play cannabis company traded on a major U.S. stock exchange, the Nasdaq.
The joint venture, called MedMen Canada Inc. (“MedMen Canada”), will develop branded products and open stores across Canada, leveraging Cronos’ Canadian reach and expertise, as well as MedMen’s class-defining retail expertise. MedMen is the largest cannabis retail chain in California, which welcomed adult use sales this year. The company 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 Canadian Licensed Producers under Health Canada’s Access to Cannabis for Medical Purposes Regulations: Peace Naturals Project Inc. and Original BC Ltd.
MedMen Canada will give us entry into an important emerging market for adult use and broaden our exposure worldwide. 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.
MedMen CEO and Co-founder Adam Bierman
Cronos has been a leader in the Canadian medical cannabis space, and their international track record makes them the perfect partner. They