One of the largest U.S. marijuana companies, MedMen Enterprises, began trading on the Canadian Securities Exchange (CSE) Tuesday and its CEO says the company has started a trend that other firms south of the border will follow.
Adam Bierman, CEO of MedMen, told BNN Bloomberg in an interview Wednesday that Canada’s “forward-thinking mentality” makes it an attractive place for marijuana companies to go public.
“Canada has shown forward-thinking mentality on many issues and many industries and marijuana is just the latest,” he said. “We found an amazing partner with the CSE. We believe that we’re kind of blazing a trail here, there’ll be many to follow.”
The California-based marijuana producer and retailer, known for its upscale Apple-like stores in the U.S., said on Tuesday that it raised US$110 million based on an enterprise valuation of US$1.65 billion after completing a reverse takeover of Ladera Ventures Corp. That makes it one of the most valuable U.S.-based cannabis companies to list in Canada.
With cannabis sales expected to reach $75 billion in the U.S. by 2030, according to estimates from Cowen Group, Bierman said there will be more “real players that come and grow.”
“This is a real industry that’s going nowhere but up,” he said. “We hope to help the CSE build its footprint. This industry is no fad.”
Canada’s marijuana sector has been booming with listed companies’ valuations skyrocketing ahead of the federal government’s anticipated move this summer to legalize the use of recreational cannabis in the country.
But producers have also seen share prices swing wildly amid market volatility this year over concerns that pot stocks are overvalued with many players in the market.
Shares of MedMen in Toronto were down more than 10 per cent at $4.45 on Wednesday at 3:31 p.m. ET.