Canadian Holding Co, MedMen branded, LA-area dispensary enjoying record popularity.
Canadian based Captor Capital Corp provided an update last week on the popularity of the two I-5 Holdings’ owned, MedMen branded dispensaries in the Los Angeles area following the legalization of recreational cannabis in California on January 1, 2018. Captor Capital Inc., I-5 Holdings Ltd.’s largest shareholder, recently announced it has signed a non-binding letter of intent to purchase the remainder of I-5 Holding’s shares.
“The success being enjoyed by the MedMen dispensaries in California provide us with a template that is easily scalable,” said John MacPhail, CEO, I-5 Holdings. “With more states, as well as Canada, primed to follow California in legalizing recreational cannabis, the growth potential for I-5 Holdings is substantial, thanks to its relationship with an established and respected brand like MedMen.”
After completion of the amalgamation, I-5 Holdings will be a wholly owned subsidiary of Captor. One of the primary and initial goals of Captor’s increased investment in I-5 is to maximize the growth potential of the two I-5 Holdings dispensaries located in the Los Angeles area operating under the MedMen brand.
“Not only will MedMen’s Los Angeles dispensaries provide us with brand awareness and a loyal following, they represent a major source of ongoing cash flow,” said John Zorbas, President, Captor Capital. “As an investment, this will prove extremely valuable as Captor seeks out further acquisitions, such as our recent investment in Millennial Esports, and continues to grow.”
The dispensaries owned by I-5 Holdings, located in Santa Ana and West Hollywood, are two of seven currently licensed to sell recreational cannabis in the Greater Los Angeles Area. Although recreational cannabis was legalized by the State of California on January 1st, the city of Los Angeles has yet to grant permits for any dispensaries within its borders. As a result, the MedMen dispensaries in West Hollywood and Santa Ana – which were previously licensed to sell medicinal marijuana – are the closest options to buy legal recreational cannabis for the approximately 4 million residents of Los Angeles.
“Our West Hollywood location has actually been in operation for more than two years, providing a wide range of medical marijuana products and expertise,” said Daniel Yi, VP of Corporate Communications, MedMen. “However, California’s legalization of the sale of recreational marijuana products has made MedMen’s dispensaries a must-visit destination for people from across the United States and beyond.”
I-5 Holdings’ West Hollywood location is proving particularly popular, while benefitting from an influx of positive press coverage, including a January 8 segment on Jimmy Kimmel Live focusing on California’s legalization of recreational cannabis hosted by popular ‘security guard’ Guillermo that was broadcast live from the MedMen branded dispensary.
“Since cannabis was legalized for recreational use on January 1st, we have had lineups of at least 150 people from open to close at our West Hollywood location,” said Adam Bierman, co-founder of MedMen. “We are seeing more awareness, more traffic, and more purchases than we ever have before, with early indications being that revenues are up significantly over the same period last year.”
About Captor Capital
Captor Capital Corp. is a Canadian investment firm listed on the Canadian Securities Exchange and the Frankfurt Stock Exchange. The company follows a strategy of acquiring profitable, established companies and organizations with growth potential that require capital to scale. Captor currently has investments in a number of companies and industries, including Millennial Esports in the technology sector, I-5 Holdings in the cannabis sector, and URU Metals in the natural resources sector.