MedMen

Last updated
MedMen
Company type Public
Industry Cannabis
Founded2010
FounderAdam Bierman
Andrew Modlin
DefunctApril 26, 2024;17 days ago (2024-04-26)
Fate Bankruptcy
Headquarters
California, United States
RevenueIncrease2.svg $130 Million(2019) [1]
Number of employees
1,000
Website medmen.com

MedMen Enterprises was a United States-based cannabis company. At its peak, it had operations in California, Nevada, Arizona, Florida, Illinois, New York, and Massachusetts. [2] [3] MedMen owns and operates 29 retail stores and 6 cultivation facilities and is currently licensed to expand its footprint to 65 retail locations. [4] Its stock trades on the Canadian Securities Exchange under the ticker symbol MMEN. [5] MedMen is also traded over-the-counter in the United States under the ticker symbol MMNFF. [6] MedMen is based in Culver City, California and has more than 1,000 employees. [7] [3] [8]

Contents

History

MedMen was co-founded in 2010 by Adam Bierman and Andrew Modlin. [9] In an interview with Green Entrepreneur, the pair said they saw a business opportunity in the emerging cannabis industry and a chance to "redefine society's relationship with cannabis". In 2018, MedMen West Hollywood was one of the first cannabis retail stores to open in California after the state's recreational cannabis laws went into effect. [10] MedMen opened its first branded retail outlets in New York [11] [12] and in Nevada in 2018, [13] and opened its first medical marijuana dispensary in Florida in 2019. [14]

In April 2018, the company opened MedMen Mustang, a 45,000 square-foot greenhouse and manufacturing facility near Reno, Nevada with expectations of producing 10,000 pounds of cannabis annually. [15]

In May 2018, MedMen began construction on a second 45,000-square-foot cannabis factory in Desert Hot Springs, California. It was scheduled to open in early 2019. [16]

MedMen went public on the Canadian Stock Exchange via a reverse takeover (RTO). The company listed under the stock ticker symbol MMEN on May 29, 2018. [3]

In June 2018, MedMen announced its acquisition of a nursery and retail license to build 25 stores in Florida. [3]

In the second half of 2018, MedMen acquired dispensaries in Arizona, Northern California, and Illinois. The company also initiated a $682 million acquisition of PharmaCann, although the deal eventually fell through. [17] The acquisition would have set a record for the largest U.S.-based cannabis company buyout. [18] [19] The board decided the money would be better spent in increasing market share naturally. [20]

In February 2019, MedMen announced a relationship with Treehouse Real Estate Investment Trust (“Treehouse”), a cannabis-focused REIT that had raised $133 million to acquire properties from MedMen. [21]

In 2019, MedMen former CFO, James Parker, filed a lawsuit claiming that he was wrongfully discharged; while MedMen's CEO and its board denied the claims, calling them baseless and asserting that they will prevail in court. [22] On April 19, 2019, MedMen's Chief Operating Officer Ben Cook, general counsel Lisa Sergi Trager, and senior vice president of corporate communications Daniel Yi resigned. [23] Parker's lawsuit's claims resulted in the New York Medical Cannabis Industry Association removing MedMen from its roster. [24]

Irally.n May 2019, the Journal of the American Medical Association called for a "national evidence-based regulatory regime for marijuana marketing" citing MedMen's nationally broadcast health claims. [25]

In June 2019, the Los Angeles Business Journal reported MedMen's cash burn rate $70 million per quarter as the company cut expenses by 20% from 2018 levels. [26]

On February 1, 2020, Adam Bierman resigned as CEO and surrendered all of his Class A super voting shares. [27] Ryan Lissack, MedMen's chief operating officer and chief technology officer, was appointed to serve as the interim CEO. [28]

On March 30, 2020, MedMen announced it had appointed Tom Lynch as Interim Chief Executive Officer and Chief Restructuring Officer. He previously served as Interim Chief Executive Officer of David's Bridal and before that chairman and chief executive officer of Frederick's of Hollywood. [29]

On April 26, 2024, MedMen announced that they have entered bankruptcy proceedings in Canada, and its CFO Amit Pandey resigned immediately after the announcement. MedMen USA filed for voluntary Chapter 7 bankruptcy liquidation and immediately discontinued all future operations permanently. [30]

Funding

Prior to its Canadian Stock Exchange listing, MedMen raised approximately $110 million through a private placement at an implied enterprise valuation of $1.65 billion. [31]

The company also raised nearly $200 million (debt and equity) from September 2018 through November 2018, but reported only $80 million in cash on hand at year-end. In March 2019, MedMen announced a $250 million convertible financing facility with Gotham Green Partners. [32]

Retail stores and facilities

As of fall 2019, MedMen operated 32 dispensaries serving both medical and recreational customers in Arizona, California, Illinois, Nevada, New York, and Florida. [33] [22]

On March 11, 2024, it was reported by several sources that Medmen had closed its operations everywhere except for in San Diego and near LA International Airport. The closures came not too long after the company's stock value dropped to zero, which lead to the ousting of their CEO and executive chairman. [34] [35]

Business strategy

Domestic

MedMen West Hollywood was one of two licensed dispensaries operating in time for the start of legal recreational use in the Greater Los Angeles area on January 2, 2018. [36]

According to the Bureau of Cannabis Control records, the first state license for a cannabis business in the city of Los Angeles went to MedMen Beverly Hills on January 19, 2018. [37] [38]

MedMen has opened eight stores in Florida to serve its medical marijuana market and plans to have nine stores open by the end of 2019. [39]

International

In 2015, MedMen partnered with MedReleaf, a Canadian marijuana producer now known as Aurora Cannabis, to open opportunities for collaboration on "product development and market penetration" with MedReleaf CEO Neil Closner joining MedMen's board of advisors. [40]

On March 19, 2018, MedMen announced its cross-border, joint-venture partnership with Canadian company, Cronos Group, called MedMen Canada. [41]

Marketing and branding

In February 2019, the company released a video ad directed by Spike Jonze and narrated by Jesse Williams [42] touting the "normalization" of cannabis usage in American culture and linking the practice to founding father George Washington. The ad also criticizes anti-cannabis sentiment and American drug war policy.

On July 19, 2019, the television animated comedy series South Park released a satirical video on YouTube [43] to promote its fictional "Tegridy Farms" cannabis brand, which originated in a 2018 episode. Multiple publications have noted similarities between the South Park ad and MedMen's Spike Jonze-directed ad, both of which begin with scenes featuring America's Founding Fathers growing hemp, particularly George Washington. [44] [45] [46]

See also

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References

  1. ↑ "MedMen Reports Fourth Quarter and Fiscal Year 2019 Financial Results - Designated News Release" (Press release). 28 October 2019.
  2. ↑ "L.A. pot retailer MedMen has 12 shops, a $1.6-billion valuation and, coming soon, Canadian stock". LA Times. 25 May 2018. Archived from the original on 10 November 2018. Retrieved 18 October 2018.
  3. 1 2 3 4 "MedMen inks $53 million acquisition of Florida cultivator, dispensaries". Marijuana Business Daily. 2018-06-06. Archived from the original on 2018-08-08. Retrieved 2018-08-07.
  4. ↑ https://investors.medmen.com/home/default.aspx?_ga=2.164530623.1428893993.1571871737-2060554665.1551660007 (subscription required)
  5. ↑ "lA-based Medmen lists on the Canadian Securities Exchange with $1.6 Billion Valuation". Daily News. 29 May 2018. Archived from the original on 19 October 2018. Retrieved 18 October 2018.
  6. ↑ "MEDMEN ENTERPRISES INC (MMNFF) Stock Price, Quote, History & News". finance.yahoo.com. Retrieved 2019-06-27.
  7. ↑ "MedMen's $1.65 Billion Listing Shows Cannabis Is Moving North". Bloomberg.com. Archived from the original on 2018-08-25. Retrieved 2018-08-07.
  8. ↑ "EXCLUSIVE: MEDMEN, THE "APPLE STORE OF CANNABIS," LAUNCHES ITS FIRST WELLNESS-FOCUSED PRODUCT LINE". Well and Good. 5 October 2018. Archived from the original on 27 November 2018. Retrieved 26 November 2018.
  9. ↑ Small, Jonathan (2018-07-09). "How MedMen Became the Starbucks of Pot". GreenEntrepreneur. Archived from the original on 2018-08-07. Retrieved 2018-08-07.
  10. ↑ "MedMen One of First Marijuana Shops Open in WeHo". NBC Southern California. Retrieved 2019-06-27.
  11. ↑ Aiello, Chloe (2018-04-19). "MedMen bets big on New York legalization by opening a luxury marijuana store on Fifth Avenue". CNBC. Retrieved 2019-06-27.
  12. ↑ Brodsky, Sam (2018-04-04). "Medical marijuana dispensary MedMen coming to Manhattan". Metro New York. Retrieved 2019-06-27.
  13. ↑ "MedMen marijuana dispensary quickly expands in Las Vegas". Las Vegas Review-Journal. 2018-10-08. Retrieved 2019-06-27.
  14. ↑ "MedMen opens its first medical marijuana dispensary in Florida". Marijuana Business Daily. 2019-06-14. Retrieved 2019-06-27.
  15. ↑ "MedMen Cannabis Production Facility in Nevada Nearly Complete". Greenhouse Grower. 2017-05-18. Archived from the original on 2018-08-07. Retrieved 2018-08-07.
  16. ↑ "MedMen opens state-of-the-art marijuana cultivation facility outside Reno". The Cannabist. 2018-04-16. Archived from the original on 2018-08-07. Retrieved 2018-08-07.
  17. ↑ "MedMen And PharmaCann Cancel $682 Million Marijuana Buyout". Addiction Center. 2019-10-24. Retrieved 2023-08-07.
  18. ↑ Gurdus, Lizzy (2018-10-15). "MedMen CEO on US cannabis retail, 'blockbuster' PharmaCann takeover". www.cnbc.com. Archived from the original on 2019-04-23. Retrieved 2019-04-23.
  19. ↑ Berke, Jeremy. "High-end marijuana retailer MedMen just spent $682 million on the largest US cannabis acquisition in history". Business Insider. Archived from the original on 2019-03-30. Retrieved 2019-04-23.
  20. ↑ "MedMen And PharmaCann Cancel $682 Million Marijuana Buyout". Addiction Center. 2019-10-24. Retrieved 2023-08-07.
  21. ↑ "MedMen Reports Second Quarter Fiscal Year 2019 Financial Results". investors.medmen.com. Retrieved 2019-03-15.
  22. 1 2 Peltz, James (24 February 2019). "Fast-growing pot seller MedMen faces lawsuit by former insider". Los Angeles Times. Archived from the original on 25 February 2019. Retrieved 26 February 2019.
  23. ↑ Schlesinger, Thomas Franck, Scott Zamost, Jennifer (2019-04-19). "Top executives at MedMen quit amid claims of financial duress". www.cnbc.com. Archived from the original on 2019-04-23. Retrieved 2019-04-23.{{cite web}}: CS1 maint: multiple names: authors list (link)
  24. ↑ Rodrick, Stephen (2019-04-16). "Rise of Big Weed: MedMen's Growing Pains". Rolling Stone. Archived from the original on 2019-04-23. Retrieved 2019-04-23.
  25. ↑ Ayers, John W.; Caputi, Theodore; Leas, Eric C. (2019-05-16). "The Need for Federal Regulation of Marijuana Marketing". JAMA. 321 (22): 2163–2164. doi:10.1001/jama.2019.4432. ISSN   0098-7484. PMID   31095243. S2CID   155103266.
  26. ↑ "MedMen CFO Slashes Costs | Los Angeles Business Journal". labusinessjournal.com. 6 June 2019. Retrieved 2019-06-11.
  27. ↑ Roberts, Chris (June 19, 2020). "MedMen's Failure Is Everything Wrong With Legal Cannabis (And Is Only The First Company To Implode)". Forbes. Retrieved 2020-06-20.
  28. ↑ "MedMen co-founder and CEO departs • New York State Bar Association recommends cannabis legalization • & more..." Cannabis Wire. Retrieved 2020-02-25.
  29. ↑ "MedMen Closes Senior Secured Convertible Financing and Provides Additional Corporate Updates". Business Wire. 30 March 2020. Retrieved 2020-07-29.
  30. ↑ "MedMen Announces It Is Entering Bankruptcy Proceedings". Bloomberg Law. April 26, 2024. Retrieved April 27, 2024.
  31. ↑ "MedMen - The First Billion Dollar Marijuana Startup? - Nanalyze". Nanalyze. 2018-02-26. Archived from the original on 2018-08-07. Retrieved 2018-08-07.
  32. ↑ cnbc.com, Alex Berenson, special to (2019-03-28). "MedMen's financial troubles are a warning for the marijuana industry". www.cnbc.com. Archived from the original on 2019-04-23. Retrieved 2019-04-23.{{cite web}}: CS1 maint: multiple names: authors list (link)
  33. ↑ "Marijuana Dispensary Locations - MedMen Cannabis Dispensary". medmen.com. Archived from the original on 2019-04-16. Retrieved 2019-10-24.
  34. ↑ "Medmen closes all but 2 SoCal stores, report says". KTLA. 2024-03-11. Retrieved 2024-03-13.
  35. ↑ "Medmen Closes its Doors: Assessing the Impact on the Cannabis Industry". Wheelhouse Staff. 2024-03-14. Retrieved 2024-03-14.
  36. ↑ "High times for local smokers in WeHo – Park Labrea News/ Beverly Press". Park Labrea News/ Beverly Press. 2018-01-03. Archived from the original on 2018-08-07. Retrieved 2018-08-07.
  37. ↑ Staggs, Brooke (2018-01-20). "Recreational marijuana sales are now allowed in LA , after shops get first licenses". Daily News. Retrieved 2024-01-12.
  38. ↑ Rittenhouse, Lindsay (2018-10-01). "An Inside Look at MedMen, Lauded as the 'Apple Store of Weed'". www.adweek.com. Retrieved 2024-01-12.
  39. ↑ https://investors.medmen.com/press-releases/press-release-details/2019/MedMen-Announces-Fifth-Florida-Store-Opening-in-Jacksonville-Beach/default.aspx (registration required)
  40. ↑ "MedMen and MedReleaf Partner to Expand Medical Marijuana Services – MedReleaf". shop.medreleaf.com. Archived from the original on 2018-08-08. Retrieved 2018-08-07.
  41. ↑ Mary Carreon. "MedMen Leaps Into Canadian Cannabis Market For Joint Venture With Cronos Group". Forbes. Archived from the original on 2019-04-14. Retrieved 2019-04-24.
  42. ↑ Beer, Jeff (25 February 2019). "Spike Jonze and Jesse Williams made a totally normal weed ad for MedMen". Fast Company. Archived from the original on 26 February 2019. Retrieved 26 February 2019.
  43. ↑ South Park Studios (2019-07-19), Tegridy Farms , retrieved 2019-07-29
  44. ↑ Jaeger, Kyle (2019-07-22). "South Park Seems To Take A Jab At Marijuana Company MedMen In Satirical Ad". Marijuana Moment. Retrieved 2019-07-29.
  45. ↑ Mitchell, Thomas (2019-07-25). medmen has weed 11422697 "Is South Park Joining the Marijuana Industry?". Westword. Retrieved 2019-07-29.{{cite web}}: Check |url= value (help)
  46. ↑ "South Park mocks cannabis company MedMen with satirical response to Spike Jonze video". The GrowthOp. 2019-07-23. Retrieved 2019-07-29.
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