MedMen Continues Restructuring Efforts, Eyes Shedding Assets in More States

Beleaguered cannabis retailer MedMen (CSE: MMEN) (OTCQX: MMNFF), announced Friday it is considering selling off more of its assets.

After divesting itself of its Florida interests for $63M to Green Sentry Holdings and trying unsuccessfully to woo Ascend Wellness to purchase its New York stores, theLos Angeles-based company is eyeing unloading assets in Arizona, Illinois and Nevada as part of its turnaround efforts.

MedMen retained ATB Capital Markets for a strategic review and the potential sale of  four properties: A dispensary located in Scottsdale and a 20,000 sq. ft. cultivation and production facility located in Mesa, AZ;  two dispensaries in Illinois and two high-profile dispensaries in Las Vegas.

The company says efforts to date have been effective, resulting in a return to positive adjusted EBITDA. Cuts include a 34% reduction in payroll costs across its retail locations, cultivation centers and corporate headquarters in the most recently reported quarter.

Last week, the LA-based retailer, currently ranked #21 in the Global Cannabis 50, issued a grim earnings call and announced it has only $15.6 million in cash left and is more than $137 million in the red. The company said in a SEC filing that current finances “raise substantial doubt with respect to the company’s ability to meet its obligations for at least one year.”  MedMen’s stock was trading above $6 a share when California legalized adult-use weed 2018, but those shares have plummeted to less than $0.03.

Along with the restructuring, the company is banking on the localization of store assortments, improving the profitability of its cultivation centers and implementing advanced POS technologies later this spring to significantly boost efficiencies. For more information about MedMen, visit www.medmen.com.