U.S. marijuana retailer and producer MedMen on Thursday said that preliminary retail sales for its most recent quarter came in at $19.2 million, already far more than it did all of last year, thanks in large part to an influx of customers following California's recreational legalization. Meanwhile, marijuana stocks Canopy Growth (CGC) and Tilray (TLRY) formed their first bases since their debuts on U.S. exchanges earlier this year.

The figures follow MedMen's debut on the Canadian Securities Exchange in May. During last year and the back half of 2016, MedMen booked revenue of $6 million. During the final three months of last year, MedMen recorded $1.46 million in sales, a 760% jump.

Seven of the company's dispensaries drew 94,000 new customers and some 130,000 returning ones during the quarter. Those customers spent, on average, $77.76 per transaction.

California's legal weed industry is still trying to win over some customers in the state who continue to buy from the illicit market. But marijuana tax revenue in California during the second quarter grew from Q1, a sign of what the state said was a "growing" trend toward complying with regulations.

"Retail is the key to the fast-evolving cannabis industry. It is where brands are built and where the margins can be maintained," MedMen CEO Adam Bierman said in a statement on Thursday. "The rapid revenue growth in our California stores, only six months into recreational sales, is a solid reflection of our continued execution of our business thesis."

Brick-And-Mortar Vs. Online

As with other retailers, MedMen also plans to offer delivery and in-store pickup that will be "accessible from MedMen's website," according to regulatory disclosures. More marijuana businesses are trying to figure out what online shopping means for the industry.

In Canada, the province of Ontario said it would begin recreational sales in October through a government-run online shop. Physical retail stores will begin recreational sales by April 2019. Ontario accounts for nearly 40% of Canada's population.

Recent marijuana IPO Tilray, in a recent presentation, said there is "little precedent for a cannabis online channel, which creates some uncertainty," according to a Cowen & Co. research note.

Meanwhile, MedMen during its fourth quarter opened its first branded location in downtown Las Vegas. It also opened a 45,000-square-foot cultivation facility in northern Nevada. The company expects a similar facility in Desert Hot Springs, Calif., to be completed early next year.

Pot Culture Meets Pop Culture

MedMen also said it wants to build a similar facility in New York, where it has a medical marijuana license. The company also wants to add a similar location near Orlando, Fla., pending the closure of an acquisition. Last month, MedMen agreed to buy a license holder in Florida with a cultivation facility. This month, MedMen also listed on the Frankfurt Stock Exchange.

As other U.S. marijuana firms try to expand more quietly ahead of federal legalization, MedMen has launched its own cannabis magazine, Ember, and this year rolled out a bold ad campaign intended to dispel "stoner" stereotypes. It has also extended its reach into Canada via a joint-venture agreement with Canadian pot producer Cronos Group (CRON).

Late last month, MedMen said that entertainment executive Jay Brown had joined its board of directors. Brown is CEO of Roc Nation, an entertainment company founded in 2008 by rapper Jay Z. Brown also worked as a senior vice president at Elektra Entertainment and an executive vice president at Def Jam Recordings.

"For more than two decades, Jay Brown has had his finger on the pulse of pop culture," CEO Adam Bierman said in a statement last month. "We are honored to have him on our board and look forward to working with him as MedMen continues on its mission to mainstream marijuana."

Marijuana Stocks

Canadian marijuana producer Canopy Growth (CGC) lost 3.7% to 30.91 in the stock market today. Canopy Growth's stock had formed a cup base with a 36.65 buy point.

Cronos Group fell 0.9% to 6.32 Tilray erased early losses to rise 0.6% to 29.27. Tilray stock is in an IPO base with a 34.20 buy point. MedMen, which trades in Canada under the MMEN ticker, rose more than 4%.

Marijuana stocks on U.S. exchanges jumped on Wednesday, following the announcement that Corona beer maker Constellation Brands (STZ) plans to invest $4 billion in Canopy. Constellation Brands stock, which tumbled 6.1% Wednesday, fell 2.8% Thursday.