Former high-flying cannabis company MedMen Enterprises Inc. (OTC: MMNFF) continues to circle the drain as the company’s stock price falls to zero. Green Market Report had previously written that the OTC had pushed MedMen’s stock down to a lower level where stock prices aren’t publicly quoted. However, some light trading continues in the stock.
Some shareholders on the Reddit board Weedstocks said that they attempted to sell shares and the trades did not go through. The Yahoo Finance trading activity showed that there was a volume of 24,139 shares with the high price of one penny. The last trade of company shares on the Canadian Stock Exchange occurred on January 4, 2024 with a high price of two Canadian cents.
MedMen just recently managed to sell its Arizona assets to Mint and said it would get $14 million. That money could help the company get up to date on its filings, which have resulted in punishment from both trading exchanges. MedMen also said that it has sold some of its Nevada assets but that deal hadn’t received regulatory approval yet. The company announced in December that it was selling MMOF Vegas Retail, Inc. and MMOF Vegas Retail 2, Inc. to a company called Retail Facilities Operations NV, LLC. managed by Eivan Shahara. The looks to generate another $10 million. Shahara is the Co-Founder and CEO of Brightroot, which is the parent company of Mint Cannabis.
However, it is a drop in the huge bucket of liabilities for the company. The company has a deficit of over $400 million and has been paying some account payables and liabilities with essentially worthless stock.
Companies that have invested in the company are likely going to battle over the scraps that remain after assets have been sold off
Companies like Tilray (NASDAQ: TLRY) have invested in MedMen. In 2021, Tilray issued 9,817,061 shares valued at $117,804 to acquire 68% interest in Superhero Acquisition L.P. (“SH Acquisition”), which purchased a senior secured convertible note issued by MedMen.
Gotham Green has been a long-time partner of MedMen and has sunk millions into the company over the years. The company is owed $1.3 million a quarter in interest payments, which it has been receiving in shares. Meaning each quarter it owns a larger chunk of the equity in addition to the debt.
MedMen may be resuscitated from the dead, but there may not be much left to save.
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