Medmen Enterprises Inc (OTCMKTS:MMNFF) Surging On Robust Sales Growth

Medmen Enterprises Inc (OTCMKTS:MMNFF) is enjoying one of the best runs in the market as it continues to expand its operations in California, Massachusetts, and Florida. Investors’ confidence in the stock has ticked higher, in recent weeks, on the announcement that the company’s stores accounted for roughly 6% of legal cannabis retail sales in California.By gaining traction in California, despite a string of market challenges, MedMen Enterprises Inc. has essentially reaffirmed its growth prospects. It thus does not come as a surprise that investors are pushing the stock up the charts, on huge volume, a trend expected to continue heading into the end of the year. MMNFF Daily ChartThe stock is currently trading at the $4.17 level close to its 52-week high of $4.99, which happens to be a critical resistance level. In August alone, the stock rallied by more than 40% a trend expected to continue taking into considerations recent developments that have reaffirmed its long-term prospects.A rally followed by a close above the $4.28 level, should reaffirm the emerging uptrend which could see the stock powering higher as the broader industry continues to tick higher. On the downside, the stock faces immediate support at the $4 a share level below which it could drop to the $3.7 handle seen as the next substantial support level.What Does MedMen Enterprises Do?MedMen Enterprises is a cannabis company that cultivates, produces and distributes cannabis to both recreational and medicinal cannabis marketplaces. The company owns 18 licensed cannabis facilities in critical states of California, Nevada and New York.Why Is MedMen Enterprises Surging?MedMen Enterprises is surging on investors taking note of the sales growth rate in California. The huge percentage affirms the fact that the company is a big player in one of the biggest and fastest growing cannabis marketplace in the U.S.The company reported $17.4 million in retail revenue from seven of its stores in California.

“The strong growth in tax revenue in the second quarter of the year shows that the legal cannabis industry is delivering on its promise of economic activity and greater public resources to the people of California. We are proud of our contribution to the state and our brand’s phenomenal performance in the largest legal cannabis market in the world,” said CEO Adam Bierman.

Expansion DriveCalifornia is not the only cannabis market that the company is targeting as part of its growth strategy. MedMen Enterprises has also set sights on Nevada where it recently opened its first store. The store is located in Downtown Las Vegas that receives about 40 million visitors every year.The company is also eyeing sales opportunities in Florida and Massachusetts, which are much bigger when it comes to cannabis sales compared to Florida. The expansion drive is part of the company’s strategy of targeting a wider audience as it also continues to diversify its revenue streams.In addition to U.S operations, MedMen has also turned attention to Canada’s Cannabis market, in the wake of the country legalizing recreational use. In response, the company has formed a joint venture as it seeks to develop cannabis-branded products for retail distribution throughout the country.Woodstock Licensing AgreementsInvestors also appear to have taken note of a recently signed exclusive license agreement that grants MedMen the rights to use Woodstock brand in its cannabis products. The company is set to start distributing its cannabis products under the iconic Woodstock brand name in California, Nevada, Massachusetts, Illinois, Arizona, and Florida as part of the deal.MedMen Enterprises will also be able to sell its cannabis products at Woodstock music festivals and promotional events, providing yet another exciting sales channel. According to the company’s Chief Executive Officer, the licensing agreement will allow the company to reach a broad audience of consumers.What Next For MedMen EnterprisesMedMen Enterprises remains well positioned to experience tremendous revenue growth going forward. Expansion into key cannabis states across the U.S as well as the strengthening operations in Canada all but underscores the company’s focus on driving sales.Recent developments highlight the fact that the company is in the right direction as it continues to invest in the fast-growing cannabis sector. Revenue growth in California affirms the fact that the company’s strategies are also paying off.While recent developments might already be priced in, any pullbacks in share price should act as reliable buying opportunities as the stock remains well positioned to continue climbing higher.We will be updating our subscribers as soon as we know more. For the latest updates on MMNFF, sign up below!Disclosure: We have no position in MMNFF and have not been compensated for this article.