Trulieve Cannabis Corp (TCNNF)

[ROGJR]

Interesting Off Yahoo!

More facts about Trulieve’s $54 million purchase.

Illinois:
MedMen had a deal to buy Pharmacann. If it didn’t go through with the sale, Medmen would still receive one retail license, one retail location, and a cultivation facility in Illinois. Plus a Dispensary Lic in Virginia. Medmen lent PharmaCann about $21 million in preparation for their merger. So, the company was essentially buying the assets for this amount, as the loan would have been forgiven upon the transfer. Medmen also just bought 7 Points which will go with the deal. So TCNNF is buying a lot for $21 million in Illinois. Medmen is getting back their invested $21 million plus they are keeping the Virginia Dispensary Lic as a bonus. Medmen is now out of Illinois and they had too since they needed capital to expand and don’t have it.

Arizona: Medmen just purchased Monarch from Whitestar for $33 million. They have one of the highest producing Dispensaries in the Country. Along with that comes a wholesale and manufacturing lic which it currently sells into 64 other dispensaries in the state.

Again, Medmen has no money to expand and is flipping it to Trulieve. Hence the $54 million in purchase price. ($33M + $21M) These are already profitable for Medmen, but they were simply spread far too thin and with their stock price so low, they couldn’t complete a successful stock offering.

Trulieve has been saying for 7 months now that they would be in 2 more states by years end. Due to all the complications with so many company sale transfers of licenses and such, it has taken the Trulieve/Medmen deal longer than expected. Medmen has needed a shot in the arm (due to falling stock prices), asked Trulieve if they could prerelease information about a sale without stating the actual company’s name who is purchasing. Trulieve granted them the ability to do so as a kind gesture. Trulieve is already successful with an increasing stock price and Net Income so it doesn’t need to claim the purchase until the timing is absolutely perfect and suits them best.

If you want to refute the above facts, then that is your prerogative. Please know that I won’t get into a back and forth discussion. I know what I know and will just leave it at that.