|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.4640 - 0.5020|
|52 Week Range||0.3600 - 3.8400|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||1.36|
U.S. marijuana retail chain MedMen Enterprises Inc. has been offering vendors shares in its company as payment for cannabis products amid a cash crunch in the industry.
Deals Signed with Holders of Dispensary Licenses in Los Angeles and Las Vegas By John Jannarone High Times announced it will open two flagship retail stores offering cannabis under dispensary licenses, giving the strongest brand in the marijuana industry a new engine of growth as it prepares for a public listing. Formally known as Hightimes […]
In late November, the cannabis dispensary chain Medmen Enterprises Inc (OTC: MMNFF) was sailing in rough seas after reporting losses of $79 million over a one-year period ended June 29. CEO Adam Bierman and his team announced a new, 90-day strategy to start generating profits, with plans to achieve positive EBITDA by the end of calendar 2020. In total, over the past 30 days, MedMen has strategically reduced its corporate headcount by over 40%, representing approximately 20 million in annual salary-related savings, the company said in a Dec. 11 release.
MedMen Enterprises Inc. shares slid more than 6% Friday, after the company said it has executed the term sheet for a dilutive equity financing of $20 million as part of a fundraising totaling $74 million. The Los Angeles-based cannabis retailer said the offering of class B subordinate voting shares priced at 43 cents each was downsized from an original $27 million, to limit dilution for existing shareholders. The company is also raising $54 million by selling licences in Arizona, including three vertically integrated licenses, and a cultivation and manufacturing license in Illinois, which will start offering legal adult-use cannabis on Jan. 2. "The company will continue to explore the sale of other non-core assets and will focus on deepening its retail market share in California, Nevada, Florida, Illinois, Massachusetts and New York," MedMen said in a statement. Proceeds of the deals will be used to finance working capital, and to expand the company's retail footprint in its core markets. Cannabis companies are making a variety of moves to raise or conserve cash following a steep selloff in the sector, with some selling assets and cutting costs and others entering sale-and-leaseback agreements on their real estate. MedMen shares have fallen 83% in 2019, while the ETFMG Alternative Harvest ETF has fallen 33% and the S&P 500 has gained 29%.
Cannabis retailer MedMen Enterprises Inc. said Friday it expects to raise $74 million through the sale of licenses in states viewed as non-core and an offering of class B subordinate voting shares. The Los Angeles-based company said it expects to raise $54 million by selling licences in Arizona, including three vertically integrated licenses, and a cultivation and manufacturing license in Illinois, which will start offering legal adult-use cannabis on Jan. 2. "The company will continue to explore the sale of other non-core assets and will focus on deepening its retail market share in California, Nevada, Florida, Illinois, Massachusetts and New York," MedMen said in a statement. Separately, it expects to raise $20 million by offering class B shares at 43 cents each. That offering was downsized from an original $27 million, to limit dilution for existing shareholders. Proceeds will be used to finance working capital, and to expand the company's retail footprint in its core markets. Cannabis companies are making a variety of moves to raise or conserve cash following a steep selloff in the sector, with some selling assets and cutting costs and others entering sale-and-leaseback agreements on their real estate. MedMen shares were not active premarket, but have fallen 81% in 2019, while the ETFMG Alternative Harvest ETF has fallen 33% and the S&P 500 has gained 29%.
After a rough stretch for the sector, marijuana stock bargains abound; here are 8 that stand out, asserts Timothy Lutts, a leading specialist in the cannabis sector and editor of the Cabot Marijuana Investor.
Only a week after Brazil came out with medical cannabis regulations , another Latin American nation has taken a step forward in the marijuana space. Peru finally rolled out the sale of medical cannabis ...
U.S. marijuana retail company MedMen Enterprises Inc. is laying off more workers and transferring voting rights away from a co-founder as it continues to fight off a cash crunch. Less than a month ago, the company said that it planned to lay off 190 workers, including 20% of corporate staff, in order to lower its spending on selling, general and administrative efforts to an annualized rate of $85 million. In a fresh announcement Wednesday afternoon, MedMen said it laid off another 20% of corporate staff this week to bring the total reduction to more than 40%, and said that it now expects to reduce SG&A expenses to an annualized run rate of $65 million. MedMen also revealed that co-founder and President Andrew Modlin has turned over the super-voting rights from 815,295 class A shares - 50% of the class A shares in existence - to Executive Chairman Ben Rose for a period of one year. The company also issued revenue guidance for the current fiscal year and the 2021 fiscal year, projecting sales of $225 million to $245 million this fiscal year - which ends in June 2020 - and $450 million to $500 million in the following year. Analysts on average were expecting revenue of $292.8 million this year and $446.5 million next year. MedMen projected positive adjusted Ebitda in the quarter ending Sept. 26, 2020, and positive free cash flow in the quarter ending March 27, 2021. MedMen shares jumped 14.4% Wednesday to about 44 cents, after a debilitating run: The stock is down 60.7% in the past month and 85.2% so far this year.
MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) ("MedMen" or the "Company"), a leading cannabis retailer with operations across the U.S., today announced several financial arrangements and corporate updates that will strengthen the Company’s balance sheet and enhance overall corporate governance. Updates include: 1) the execution of financial agreements ("Financing Plan"), which includes US$37 million in financing; 2) an amendment to certain of the Company’s outstanding debt; 3) an expansion of the Company’s corporate SG&A initiatives through a new round of cost reductions; and 4) enhanced corporate governance with the Company’s co-founder Andrew Modlin granting a limited proxy to Ben Rose, Executive Chairman of the Board with respect to Mr. Modlin’s Class A Super Voting Shares for a period of one year.
Cantor Fitzgerald took a cautious view on the consumer CBD sector Tuesday. Consumer CBD has "no obvious near-term catalysts," said analyst Pablo Zuanic. Companies that Cantor follows have not experienced product returns, he said.
Public opinion on cannabis is changing quickly, growing ever more lenient. In a short span, less than a lifetime, we’ve seen a series of decriminalization and partial legalization regimes take hold in the US. While the drug remains fully illegal at the Federal level, it is fully legal in 11 states and legalized for medical use in another 15. The result of this patchwork is that Canada, which enacted full legalization nationwide in October 2018, has become the center of North America’s cannabis industry.Most of the large cannabis companies – the growers and suppliers – are based in Canada. US-based companies face the twin handicap of not being able to operate in the whole country as well as not being able to transport their product across state lines, even when the states involved have legalization regimes. It makes a confusing picture for the financial analysts and stock investors.That doesn’t mean you can’t get resolution from studying the field. There are advantageous investments in the cannabis industry, but potential investors may have to look a bit harder to find them.Seaport Global analyst Brett Hundley has taken a deep dive into three cannabis names that have lately been making waves in the sector. The companies include the largest player in the cannabis industry, a mid-sized producer that may or may not be able to live up to its hype, and a small-cap distributor that could be entering its death-throes.A look at the analyst consensus ratings on these stocks show that Wall Street is watching them with a cautious eye. Yet, Hundley believes that one of the trio presents a buying opportunity. Let's take a closer look:Hexo Corporation (HEXO)Hexo made a big splash in the Canadian cannabis sector. The company quickly grew to be one of the country’s biggest producers, setting up some 2 million square feet of grow facilities in Ontario and Quebec. The company markets several brands and a full line-up of products for the medical and recreational sectors across Canada.Like MedMen, however, Hexo ran too far and too fast. The company posts regular EPS losses, and in calendar Q3 missed the forecast by 120%. Analysts had expected a 5-cent per share loss – but the net loss per share came in at 11 cents. It was the latest in a long line of bad news for HEXO, news that has pushed the stock value down by 72% since peaking at the end of April.A closer look at those recent quarterly results sheds more light on what’s wrong with HEXO. Early in October, the company announced that it would be delaying the Q3 report (the company’s fiscal Q4) to the end of the month, and withdrew its 2020 guidance. Shares predictably fell, and industry watchers were understandably nervous. At the end of the month, HEXO reported revenue of C$15.4 million on sales of 4,009 kilograms of cannabis products.First, the good news. The top line was up 18% sequentially, and a whopping 1000% year-over-year. Sales volume was up 45%. Gross margins, at 45%, were acceptable, and an increase in operating expenses went along with an increase in the size and scope of company operations. But investors just can’t get over that dramatic rise in EPS loss, or the reduction in 2020 guidance. And like MedMen, Hexo has been laying off workers – the company cut 200 positions this past fall.Hundley very clearly laid out the warning factors in HEXO: “We note that many of the company's opex improvements weren't made until late in October, pushing full benefits into later quarters. As well, we are mindful of potential margin pressures from the fact that HEXO may not see 2.0 benefits until its national rollout towards summer of 2020. Quebec recently announced a decision to ban cannabis vapes from its market; this is disappointing for HEXO…” Hundley gives this stock a Hold rating, and declines to set a definite price target.Wall Street’s view of HEXO is similar to Hundley’s. The stock has a Hold from the analyst consensus, based on 13 ratings, including 8 Holds and 3 Sells, but only 2 Buys. Shares have slipped from over $8 earlier this year to just $2.29 now. The average price target of $3.23 implies an upside of 41%, however – a reminder that the potential for risk and usually includes a potential for reward. (See Hexo's stock analysis on TipRanks)Canopy Growth (CGC)And now we get to the giant of the cannabis industry. With a market cap exceeding $7 billion, Canopy is by far the largest company in this sector. Canopy’s size extends to market share and production capabilities, too – simply put, this company dominates Canada’s legal marijuana markets.So why isn’t it turning a profit? Canopy received a $4 billion payday in 2H18, when beer giant Constellation Brands bought a 35% stake in the company, and the conventional wisdom then was that Canopy was well-positioned for ‘cannabis 2.0,’ the expansion of Canada’s legal market this December. With new lines of edibles, beverage, and vaping products entering the legal lists, a partnership with a beverage giant and its distribution network seemed like a no-brainer.But Constellation’s $4 billion stake in CGC also came with control of the Board of Directors – and a desire to see the stake pay off. Constellation had no patience for steady EPS losses, and after two consecutive quarters of increasing losses, Canopy CEO and founder Bruce Linton found himself out of a job.Since then, the company has had to deal with upper management churn as well as the known headwinds of Canada’s cannabis market: oversupply, regulatory bottlenecks, too-low retail prices. In the November quarterly report, for Q2 fiscal 2020, CGC reported yet another loss, this time of 82 cents per share. Revenues were up year-over-year, but missed the analyst forecasts.In a piece of good news, Canopy will head into the New Year with some stability at the top. David Klein will take the CEO spot effective January 14. Klein is currently CFO of – you guessed it – Constellation Brands, so it appears that the beverage giant will be exerting greater control over Canopy in 2020.Hundley, in his note on Canopy, points out that the appointment of Klein to the top spot should come as no surprise. Constellation dwarfs Canopy, and even though it only holds a one-third stake in the smaller company, this was no ‘merger of equals.’ Hundley expects that Klein will move quickly to reverse CGC’s losses, as Constellation wants to see a return on its $4 billion investment. Hundley writes, “We expect that Klein will move quickly to pursue profitability within Canopy, with an overriding focus on this metric. Canopy has burned $800MM in cumulative funds over the past two quarters, driving a cumulative adjusted EBITDA loss of almost $250MM. Our model assumes deep cuts to SG&A during FY2021, and we feel better about execution of such an occurrence, with Klein at the helm. We also anticipate substantial cuts to capital expenditures and business investment…”As with HEXO above, Hundley declined to put a price target on Canopy and rates the stock a Hold. He wants to see what the new management will do, and how the company will execute as the cannabis beverage market begins to open.Like Hundley, Wall Street is cautious on Canopy. Even though the consensus rating on the stock is a Moderate Buy, it’s based on a mix of 6 Buy ratings and 10 Holds. Adding to the warning flashers is the average price target, which at $20.60 suggests a 2% downside from the $20.38 current share price. Canopy brings plenty of advantages to the table, but the cannabis industry is still full of pitfalls. (See Canopy's stock analysis on TipRanks)MedMen Enterprises (MMNFF)The weakest of our cannabis plays today is MedMen. Based in California, the most populous state in the Union and the country’s largest single legalized-cannabis market, MedMen has been in business since 2010. The company operates 32 dispensaries across six states: California, Nevada, Arizona, Illinois, New York, and Florida. MedMen produces much of its own product, in growing facilities that total well over 90,000 square feet.Despite offering a wide range of cannabis products – edibles, vaporizers, concentrates, topicals, pre-rolled joints – for both the adult use and medical markets, MedMen has had difficulty gaining traction. For its Q1 2020, the company reported some good news – a 105% year-over-year revenue gain to $44 million, and gross margins of 52% – but the basic fact of a $22.2 million net loss overwhelmed that. Investors have limited patience for companies that bleed money, and MMNFF shares have been declining steadily throughout calendar year 2019.MedMen may be able to survive the growing pains of a new industry in the process of both formation and legalization, but can it do so while downsizing? Last month, the company released plans to improve market share and cut expenses – but what cannabis industry watchers noticed most was that the plan also includes extensive layoffs. Over 190 employees are being cut in the name of efficiency and capital allocation, but behind the management spin is the simple fact the company expanded too fast and now is bigger than it can afford to be. The picture does not inspire confidence.In his yesterday's research note on MedMen, Hundley personifies the Wall Street view of this stock. He gives it a Buy rating, noting that the company has a strong brand presence and that management is willing to make hard decision, but his comments show the underlying caution: “It is clear that the company will need to cut its cost base further, while also generating a healthy amount of asset sale proceeds, if it wants to remain as a going concern… we believe that institutional investors have now mostly lost faith in the long-standing leadership of this business.” It’s not exactly a ringing endorsement.Hundley’s $4 price target, implying a massive 925% upside, also is not a signal of earth-shaking potential here. Rather, it indicates that MedMen has fallen so far – the stock is down 86% this year – that at this point, there is really nowhere for it to go but up. (To watch Hundley’s track record, click here)Check out these 5 ‘Strong Buy’ stocks that top Wall Street analysts recommend
DETROIT — The premier gathering of cannabis entrepreneurs and investors in North America, the Benzinga Cannabis Capital Conference , is heading to Miami in 2020 for its sixth installment. The conference, ...
MedMen Enterprises Inc (OTC: MMNFF) (CSE: MMEN) reported first-quarter results Wednesday as the cannabis company embarks on cost-cutting efforts that include 190 layoffs. MedMen reported revenue of $44 million, up by 105% on a year-over-year basis. The first-quarter gross margin was 52%, in contrast to 50% in the prior quarter.
MedMen Enterprises Inc. reported Tuesday that revenue rose 105% but the cannabis company missed Wall Street consensus sales estimates. The weed retailer reported a fiscal first-quarter net loss of $31.5 million, which amounts to 16 cents a share, versus $12.5 million, or 27 cents a share in the year-ago quarter. Revenue rose to $44 million from $21.5 million a year ago. Analysts polled by FactSet had modeled sales of $47.9 million. "We entered Fiscal 2020 on a mission to build a more nimble and financially flexible MedMen," Chief Executive Adam Bierman said in a statement. "As we right-size our organization and implement an intensified focus on free cash flow generation, our business will become more efficient, in turn allowing us to better serve our stakeholders." The company has said previously that it is laying off roughly 20% of its employee base which should achieve $10 million in annual cost savings. U.S.-traded shares of MedMen have fallen 83% this year, as the S&P 500 index gained 25%. The ETFMG Alternative Harvest ETF has fallen 32% this year.
LOS ANGELES-- -- First quarter revenue of $44.0 million, up 105% year over year Opened four new retail locations during the quarter, including three in Florida and one in California Company is licensed for 70 retail stores and currently operates 33 retail locations across 9 states, including pending acquisitions Post quarter end, announced five-part plan to reduce costs and accelerate path towards ...
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.
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.