LOS ANGELES--(BUSINESS WIRE)--
MedMen Enterprises Inc. (“MedMen” or the “Company”) (MMEN.CN) (MMNFF) announced today that Brent Cox, Omar Mangalji, and the Inception Companies, through their affiliate, MMMG-MC, voluntarily dismissed their frivolous lawsuit against MedMen and its related companies, as well as its co-founders Adam Bierman and Andrew Modlin yesterday, in what can only be described as a personal admission that their case was improper. The request for dismissal also follows the Los Angeles Superior Court’s order in January 2019 that stated such claims were not likely to succeed on the merits.
After earning millions of dollars as early investors in MMMG LLC, Cox and Mangalji sought to take further advantage of their position as insiders by filing suit against MedMen, Bierman, and Modlin alleging wrongdoing in connection with a common business decision to lock-up certain shares of MedMen held by MMMG. After the suit was filed, MedMen immediately filed a motion to compel the matter to arbitration as required under the parties’ contractual agreements. Despite filing an opposition to the demand for arbitration and insisting for months that their claims had to be litigated in Los Angeles Superior Court, Cox and Mangalji voluntarily dismissed their court action and agreed to arbitrate their dispute. The voluntary dismissal serves as an acknowledgment that Cox and Mangalji should not have filed the lawsuit in the first place. By opposing MedMen’s earlier efforts to compel arbitration, Cox and Mangalji delayed final resolution of the dispute and wasted significant shareholder resources by requiring MedMen and its affiliates to litigate the matter.
This is not the first time the case has been determined to lack merit. The request for dismissal follows a Los Angeles Superior Court judge’s ruling in January 2019 that Cox and Mangalji’s improper claims were not likely to succeed on the merits in this case. The Judge made the ruling, after reviewing the evidence and Cox and Mangalji’s claims. Despite the Court’s clear finding against Cox and Mangalji, they continued to pursue their meritless claims in open Court, until yesterday, when they finally agreed to abide by their obligations under their contracts.
Not only is this behavior extremely disappointing as it places Cox and Mangalji’s personal issues with the Company ahead of the interests of the shareholders, but it reeks of an attempt to unfairly compete by using the public court system to gain publicity for their own company.
Immediately after filing the faulty lawsuit, Mangalji, a reported “playboy” who uses the alias “Ronnie Bacardi,” appeared on various news media outlets touting his baseless claims and plugging his own competing company. Having used the initial lawsuit to promote their own company, Cox and Mangalji now seek to retreat to the anonymity of a confidential arbitration to avoid publicly airing their own wrongdoings.
MedMen looks forward to the opportunity to expeditiously litigate the frivolous and unfounded claims against the Company and its co-founders brought by Cox and Mangalji, who have already reaped millions of dollars from their investment. Not only does MedMen expect to defeat the wholly unmeritorious claims, it also intends to seek substantial monetary and punitive damages from Cox and Mangalji due to their wrongful acts.
MedMen is a cannabis retailer with operations across the U.S. and flagship stores in Los Angeles, Las Vegas and New York. MedMen’s mission is to provide an unparalleled experience that invites the world to discover the remarkable benefits of cannabis because a world where cannabis is legal and regulated is a safer, healthier and happier world. Learn more at www.medmen.com.
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking information”) with respect to the Company, including, but not limited to: information concerning the completion of the contemplated business combination with PharmaCann, LLC, expectations regarding whether the contemplated acquisition will be consummated, including whether conditions to the consummation of the proposed acquisition of PharmaCann will be satisfied and whether the proposed acquisition will be completed on the current terms, the timing for completing the proposed acquisition of PharmaCann and other pending acquisitions, expectations for the effects of the proposed acquisition of PharmaCann and other pending acquisitions, including the potential number and location of facilities and stores or licenses therefor to be acquired, expectations regarding the markets to be entered into by or expansion in current markets by the Company as a result of completing such proposed acquisitions, the ability of the Company to successfully achieve its business objectives as a result of completing the contemplated acquisitions, estimates of future cultivation, manufacturing and extraction capacity, store related forecasts, including as to number of planned stores to be opened in the future, and any other statement that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results, financial position, operational or financial performance or achievements. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, will”, “projects”, or “believes” or variations (including negative variations) of such words and phrases, or statements that certain actions, events, results or conditions “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Except for statements of historical fact, information contained herein constitutes forward-looking information.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including among other things assumptions about: the contemplated acquisitions being completed on the current terms and current contemplated timeline; development costs remaining consistent with budgets; favorable equity and debt capital markets; the ability to raise sufficient capital to advance the business of the Company; favorable operating conditions; political and regulatory stability; obtaining and maintaining all required licenses and permits; receipt of governmental approvals and permits; sustained labor stability; stability in financial and capital goods markets; favorable production levels and costs from the Company’s operations; the pricing of various cannabis products; the level of demand for cannabis products; and the availability of third party service providers and other inputs for the Company’s operations. While the Company considers these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual performance, achievements, actions, events, results or conditions to be materially different from those projected in the forward-looking information. Many assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.
Furthermore, such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, financial position, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, financial position, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the ability to consummate the proposed acquisitions; the ability to obtain requisite regulatory approvals and third party consents and the satisfaction of other conditions to the consummation of the proposed acquisitions on the proposed terms and schedule; the potential impact of the announcement or consummation of the proposed acquisitions on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; the diversion of management time on the proposed acquisitions; risks relating to cannabis being illegal under US federal law and risks of federal enforcement actions related to cannabis; negative changes in the political environment or in the regulation of cannabis and the Company’s business; risks relating to lack of banking providers and characterization of the Company’s revenue as proceeds of crime as a result of anti-money laundering laws and regulation; the costs of compliance with and the risk of liability being imposed under the laws the Company operates under including environmental regulations; negative shifts in public opinion and perception of the cannabis industry and cannabis consumption; risks that service providers may suspend or withdraw services; the limited operating history of the Company; reliance on the expertise and judgement of senior management of the Company; increasing competition in the industry; risks related to financing activities, including leverage; risks related to the management of growth; increased costs related to the Company becoming a publicly traded company; risks inherent in an agricultural business; adverse agricultural conditions impacting cannabis yields; risks relating to rising energy costs; risks of product liability and other safety related liability as a result of usage of the Company's cannabis products; negative future research regarding safety and efficacy of cannabis and cannabis derived products; risk of shortages of or price increases in key inputs, suppliers and skilled labor; a lack of reliable data on the medical and adult-use cannabis industry; loss of intellectual property rights or protections; cybersecurity risks; constraints on marketing products; fraudulent activity by employees, contractors and consultants; tax and insurance related risks; risk of litigation; conflicts of interest; compliance with extensive government regulation; changes in general economic, business and political conditions, including changes in the financial markets; as well as those risk factors discussed in the Company’s Annual Information Form filed on SEDAR at www.sedar.com on November 2, 2018 and discussed in the Company’s other public filings available on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate as actual results and future events could differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is provided and made as of the date of this press release and the Company does not undertake any obligation to revise or update any forward-looking information other than as required by applicable law.
SOURCE: MedMen Enterprises