MedMen Enterprises announced the launch of a delivery service for its consumers in the state of California.
Shares of multi-state operator (MSO) MedMen Enterprises (CSE:MMEN,OTCQX:MMNFF) bounced back during Monday’s (August 19) trading session after the company introduced a marijuana delivery service for California.
As part of the launch — which includes the introduction of a consumer rewards program — the company announced it will absorb the costs associated with delivery to consumers.
Adam Bierman, co-founder and CEO of MedMen, said this business decision is the next step in the evolution of the company’s operations in California, its home state.
According to MedMen, its 17 stores across California have now started to offer delivery services.
MedMen opened at C$2.58 on Monday, recovering from a dip at the end of the previous week. As of 3:56 p.m. EDT, shares of the company were at C$2.72, representing a 6.67 percent increase for the day.
Despite the share price drop late last week, shares of the company surged earlier that week thanks in part to the release of MedMen’s preliminary results for its fiscal Q4 2019.
The MSO expects to report US$61 million in revenues for its most recent earnings season. MedMen will report its official quarterly and fiscal year-end results on October 28.
“Following the closing of pending acquisitions, we will be licensed for up to 92 retail locations across 12 states, and there is tremendous opportunity ahead to turn the balance of our retail licenses into revenue-generating storefronts,” Bierman said in a statement.
Delivery services expand operations for marijuana market
Marijuana delivery systems have gained prominence as a way to compete with the accessibility of illicit market sources available to consumers.
The company’s subsidiary is dubbed Super Anytime. According to chair Aaron Salz, “(It intends to offer) an UberEats-style platform that is legal and compliant in Canada.”
Salz, who also acts as a business consultant at the firm Stoic Advisory, told Marijuana Business Daily the company has worked closely with provincial regulators to expand the business model beyond Ontario.
Oakville, Ontario-based Pineapple Express Delivery has been busy in Canada expanding deals with retailers to offer same-day delivery services for marijuana consumers.
Pineapple Express is also acting as partner for the Super Anytime operation by providing same-day delivery services for e-commerce service.
“Having observed the Boozer platform from afar, we were excited for the opportunity to partner with a group that has already achieved great success in generating orders of legal, government controlled substances that require compliant last-mile fulfillment services,” Randy Rolph, CEO of Pineapple Express Delivery, said in a statement.
MedMen currently maintains a price target of C$6 on analyst research site TipRanks.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.