|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.5957 - 0.7500|
|52 Week Range||0.5957 - 3.8400|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||2.22|
Shares of MedMen Enterprises Inc. tumbled 21% toward a record low in active afternoon trading Monday, in the wake of the California-based cannabis retailer's announcement of job cuts and plans to sell assets in an effort to cut spending. The stock, which went public in May 2018, had broken the buck on a closing basis for the first time on Friday, when it closed at 99 cents. It has now plummeted 60% over the past three months, while the ETFMG Alternative Harvest ETF has dropped 38% and the S&P 500 has gained 8%. Late Friday, the company said it was cutting more than 20% of its staff, scale back marketing and outsource some operations.
Cannabis retailer MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF ) announced Friday a strategic plan to reach its target of positive EBITDA by the end of 2020 that includes the layoff of 190 employees. ...
MedMen said it would try to raise cash by selling its stakes in a cannabis real-estate investment trust, selling licenses in noncore markets and limiting its new store openings.
(Bloomberg) -- Wall Street’s exuberance over legal weed has quickly curdled into sober reality.In a matter of months, white-hot cannabis companies have flamed out in spectacular fashion. Many have lost two-thirds or more of their value.Widespread legalization has been thwarted. Bank financing has dried up. Deep-pocketed institutional investors remain on the sidelines and old-fashioned black-market dealers still provide stiff competition.The pain deepened on Thursday, when Ontario-based Canopy Growth Corp. announced revenue that fell short of the lowest Wall Street estimate and a loss that one analyst called “astounding.” That sent shares to the lowest since December 2017. It’s still the largest pot company in the world, but at C$7.1 billion its market value is just a sliver of the C$24 billion it reached in April.One day later, MedMen Enterprises Inc., one of the first U.S. cannabis companies to sell shares to the public, said it would dismiss 190 employees, including about 20% of its corporate workforce, as it struggles to preserve a dwindling cash pile.“The last industry chapter was defined by growth at all costs,” MedMen Chief Executive Officer Adam Bierman said in an interview. “Now we’re transitioning out of that chapter, and that transition is harsh and quick.”Legal WeedIt wasn’t that long ago that the cannabis industry was cruising. Big markets like Canada and California had legalized recreational use, while populous states such as New York and New Jersey were expected to follow suit. This had executives and analysts forecasting sales in the tens of billions of dollars within a few years, sending stocks to valuations that even some in the industry warned were too high.But legalization hasn’t been the trigger to invest that many expected. Canada’s biggest provinces have allowed few retail stores to open, while companies have struggled to develop the right mix of products. In California, the legal market has had to contend with high taxes and a well-established illicit market. Legalization efforts in other states have stalled.Despite the obstacles, many remain optimistic that bullish benchmarks will be reached, though later than expected. Cowen Inc. analyst Vivien Azer recently boosted her U.S. sales outlook to $85 billion by 2030 from a previous forecast of $80 billion, while Canopy has said it’s still on track to turn a profit in three to five years.For the first time, with stocks at such low levels, “there’s incredible pockets of value in the space,” said Justin Ort, chief investment officer for the Measure 8 Full Spectrum Fund, which invests in cannabis. “But the Street’s not willing to see it right now.”What would get share buyers’ attention, Ort said, is legislative easing in the U.S., including passage of the SAFE Banking Act, which would pave the way for financial institutions to do business with cannabis companies and bring large institutional investors and U.S. capital markets into the fold.Patient InvestorsBut cannabis remains federally illegal in the U.S., meaning that shares are largely held by retail investors, who are less likely than institutional investors to remain patient in a downturn.“In almost every other industry, people can make relative-value judgments,” Jeff Solomon, CEO of Cowen, said at his firm’s cannabis conference in Boston last week. “In this industry they’re like, ‘Well, it’s not really a matter of price, it’s a matter of whether or not I should even get involved.’”That’s raised fears that many companies will go bankrupt before financing becomes available. It’s already happening to DionyMed Brands Inc., which filed for receivership last month.“The capital markets have gone from frothy to completely closed,” MedMen’s Bierman said. “We’re now entering a stage where businesses are going to have to be self-sustaining.”To contact the reporter on this story: Kristine Owram in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Bob Ivry, Stephen MerelmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
MedMen Enterprises Inc. , a U.S. marijuana retail chain, announced Friday afternoon that it is cutting more than 20% of its staff and looking to sell some of its assets amid a cash crunch. MedMen said it would lay off 190 workers, scale back marketing and outsource functions such as human relations in an effort to reduce spending on selling, general and administrative efforts to an annualized rate of $85 million. In the fiscal year that ended June 29, MedMen reported general and administrative costs of $244 million and sales and marketing expenses of $27.5 million. MedMen also announced that it has agreed to sell its stake in a pot-focused real estate investment trust for $14 million, exit various venture investments for a net return of $8 million, and will look to sell "certain operations and licenses in states that are currently deemed not critical to the company's retail footprint." MedMen also will slow down on certain planned initiatives, including indefinitely postponing some retail buildouts and expansions, renegotiating a previous acquisition to turn a $15 million cash payout into $10 million in stock, and slowing down M&A activity. MedMen said at the end of its last fiscal year that it had less than $34 million in cash and equivalents, after burning through $45.4 million in a year that included several financing activities. MedMen's over-the-counter shares have lost more than 65% of their value in 2019.
(Bloomberg) -- Cash-strapped MedMen Enterprises Inc. is laying off more than 190 employees, including 20% of its corporate workforce.The move is part of a broader corporate restructuring, with the pot company targeting positive earnings before interest, taxes, depreciation and amortization by the end of 2020.MedMen will also divest non-core assets, including the sale of its stake in Treehouse Real Estate Investment Trust for net proceeds of $14 million. MedMen created Treehouse last year, starting a trend that has seen several other pot companies spin off their real estate into separate companies.The industry is in the midst of a “harsh and quick” transition from growth to retrenchment, MedMen Chief Executive Officer Adam Bierman said in an interview. Like many other companies in the industry, MedMen’s share price has fallen by about two-thirds since the beginning of the year, and “capital markets have been shuttered,” he said.“We find ourselves in the exact same spot as all of the other competitors across the industry, where nobody’s fully funded because everybody’s been living in this high-growth phase,” Bierman said. “That’s why we’re taking such dramatic measures: I will not allow the company to be exposed where we didn’t act fast enough, staring down this future.”A recent study of 30 pot firms by trade publication Marijuana Business Daily found that Los Angeles-based MedMen had the weakest cash position, with just over one month of cash coverage.The company said Friday it will sell its minority stakes in various brands for net proceeds of $8 million and has engaged Canaccord Genuity Corp. to “explore strategic alternatives” for operations and licenses in non-core markets. It will also limit new store openings in 2020 to stores that have the potential to generate more than $10 million in revenue within the first 12 months.The news comes one month after MedMen announced it would scrap its planned acquisition of PharmaCann LLC and terminate Chief Financial Officer Michael Kramer.As a result of Friday’s moves, MedMen’s selling, general and administrative expense run-rate will fall to $85 million from $132 million, Bierman said.“This is about preserving and protecting, and part of that is bolstering our balance sheet for the times ahead,” he said.To contact the reporter on this story: Kristine Owram in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Richard Richtmyer, Will DaleyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The 90-day plan will focus on five key objectives: 1) focusing on core markets, while divesting non-core assets; 2) reducing corporate SG&A; 3) driving asset-level EBITDA; 4) limiting cash outlays for the next 12 months; and 5) reinvesting in the Company’s employees and culture. MedMen believes the Company can execute this plan while still growing its retail presence and maintaining a best-in-class retail experience. “We have a clear plan to increase our market share, while at the same time enhancing our margins and reducing our corporate overhead,” said Adam Bierman, MedMen co-founder and chief executive officer.
Ask Benjamin Witte about Recess, and one of the first places he’ll send you is the company’s Instagram page.
As the cannabis market expands, it's hard to keep track of the many products that launch every week. Culinary CBD and edibles brand Azuca has released single-serving, hemp-infused organic sugar sticks. The sugar sticks size and pre-measured packaging are also convenient for consumers on the go.
Cannabis business network Leafwire this week launched Leafwire Jobs, featuring 100% cannabis and hemp industry jobs. The job platform is free for all job seekers. “A job board has been by far the #1 requested feature from our member base over the past year," Leafwire CEO Peter Vogel said.
Last month, Charlotte's Web announced that it would partner with Nielsen to guide US retail companies on the growth of the CBD (cannabidiol) space.
On the other hand, we saw a series of bad news coming out of major cannabis companies. MedMen Enterprises Inc. (CSE: MMEN) (OTC: MMNFF) tumbled on a substantial growth in its net losses, which came in at $82.9 million for the fourth quarter, more than double the loss reported in the same period last year.
Cannabis stocks were mostly lower Thursday, led by Curaleaf Holdings, after the company became the latest to scale back a previously announced acquisition in the wake of a massive re-rating of the sector in the past few months.
Florida is the second-fastest adopter of medical marijuana. The state reports an average increase of 609 medical marijuana patients on a daily basis.
MedMen Enterprises (MMEN) (MMNFF) reported its fourth-quarter earnings that ended on June 30. The company reported revenues of $41.97 million.
MedMen Enterprises Inc. plans to release its financial results for the first quarter fiscal 2020 ended September 28, 2019 after market close on Tuesday, November 26, 2019.
MedMen's net loss was $277 million for 2019; $79.1 million, or 75 cents per share, was attributable to the company’s shareholders, MedMen said. “Fiscal 2019 was a transformative year for MedMen, with over 2 million completed retail transactions to date and revenues increasing 227% year-over-year,” Adam Bierman, MedMen's co-founder and CEO, said in a statement. MedMen detailed business developments including the launch of its delivery service in California and Nevada, the start of its new loyalty program, MedMen Buds; its continued Florida expansion and the termination of its merger with PharmaCann.
MedMen Enterprises Inc. (MMEN.CN) (MMNFF) (“MedMen” or the “Company”) is pleased to announce certain amendments to its US$250,000,000 senior secured convertible credit facility (the “Facility”) arranged by Gotham Green Partners. As a result of the amendments to the Facility, the aggregate amount that remains available to be borrowed has not changed. Tranche 3 now consists of $10,000,000 in available credit and Tranche 4 consists of $115,000,000 in available credit.
MedMen Enterprises Inc. late Monday reported fiscal fourth-quarter net losses of $24.2 million, or 15 cents a share, versus losses of $32.9 million, or 81 cents a share in the year-ago quarter. Revenue for the cannabis retailer rose to $42 million from $20.6 million in the same quarter last year. U.S.-traded shares of MedMen closed up 5.5% to $1.39 Monday. Stock in the California-based company has lost half its value this year, as the ETFMG Alternative Harvest ETF has declined 19%.
LOS ANGELES-- -- Record full year revenue of $130 million, up 227% year over year Fourth quarter revenue of $42 million, up 104% year over year Surpassed $110 million in annualized run-rate retail revenue across California, the largest cannabis market in the world Company is licensed for 70 retail stores and currently operates 32 retail locations across 9 states, including pending acquisitions MedMen ...
MedMen Enterprises Inc. (MMEN.CN) (MMNFF) (“MedMen” or the “Company”), a leading cannabis retailer with operations across the U.S., today announces the opening of two new locations in the state of Florida: Central Orlando and Tallahassee. The Company now has seven operational stores in Florida, with five additional store openings in the state planned for the remainder of the calendar year.
(Bloomberg) -- The rout in pot stocks is taking its toll on companies’ ability to raise money, just when they need it most.Hexo Corp. announced Wednesday that it will pay an annual interest rate of 8% on C$70 million of unsecured convertible debentures that will mature in three years.That tops the 5% Tilray Inc. pays for its $450 million of convertibles maturing in 2023, and the 5.5% coupon on Aurora Cannabis Inc.’s $345 million maturing in 2024.It’s not a shock that Hexo has to pay more, as the company recently lost its chief financial officer, withdrew its 2020 guidance and delayed its earnings release.Broader TroublesBut CIBC analyst John Zamparo said he was surprised by the “necessity, timing and terms” of the fund raising in the midst of a “very capital-constrained market for the cannabis industry.” The conversion price of C$3.16 a share is a 10% discount to Hexo’s closing share price on Wednesday, while the five most recent convertible debt deals in the sector had an average premium of 16%.“We struggle to reconcile this difference,” Zamparo said in a note. “We also believe it is fair to wonder whether this type of deal is best negotiated at a time when the company’s CFO has been in the role for less than one month.”It’s indicative of the broader troubles that are plaguing the cannabis sector as stocks have fallen by more than 50% on average since their March highs.Green Organic Dutchman Holdings Ltd. said earlier this month that it’s been unable to secure traditional sources of financing “on acceptable terms” and is slowing down construction of its greenhouse in Valleyfield, Quebec, until it can raise the money it needs.And there are likely to be plenty more companies in the same boat, according to Craig Behnke, equity analyst at trade publication Marijuana Business Daily.A study of 30 pot firms’ operating cash flow, capital expenditures, balance sheets and debt payable in 2020 found that nine had one and a half years or less of cash on hand. These companies will likely “have to meaningfully alter their expansion plans, reduce their guidance or raise very expensive capital if they are going to continue on their path,” Behnke said in an interview.Of the companies Behnke studied, MedMen Enterprises Inc. had the least cash coverage, followed by Acreage Holdings Inc. and CannTrust Holdings Inc. Hexo was in the middle of the pack with 2.2 years worth.(Adds analyst comment in paragraphs 5-6)To contact the reporter on this story: Kristine Owram in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Jacqueline Thorpe at email@example.com, ;Brad Olesen at firstname.lastname@example.org, Chris FournierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Right now, medical marijuana is legal in 33 states. Florida is one state that may aggressively push for recreational marijuana legalization in 2020.