Full Answer
Is MedMen Enterprises'stock too low to buy?
MedMen Enterprises ( OTC:MMNFF) isn't one of them. The leading U.S. marijuana retailer has seen its stock fall in the first few months of the year while several other marijuana stocks have soared by 50% or more. MedMen's share price is even near an all-time low.
What does the PharmaCann acquisition mean for MedMen stock?
With the PharmaCann acquisition, MedMen will have operations in 12 states that together account for over half of the U.S. population. MedMen's biggest market is in California. The state's recreational marijuana market got off to a rocky start in 2018. However, as the market improves, MedMen is poised to benefit.
What happened to MedMen?
MedMen was kicked out of the New York Medical Cannabis Industry Association in February. This action came after the company's former CFO, James Parker, alleged in a lawsuit that MedMen executives created an environment that tolerated "racial, homophobic, and misogynistic epithets and slurs," as well as abuse of drugs and alcohol.
Will MedMen win the Illinois recreational marijuana market in 2018?
The state's recreational marijuana market got off to a rocky start in 2018. However, as the market improves, MedMen is poised to benefit. The company could also win if other major states legalize recreational marijuana. One of the top possibilities is Illinois, where efforts are underway to advance legislation to legalize recreational pot.
Is MedMen going out of business?
The assets include inventory, dispensaries, cultivation operations and the company's license. The deal is expected to close in late April or early May, according to a statement.
Is MedMen being sold?
MedMen to Sell New York Operations for $88 Million; $15 Million Incremental Value. LOS ANGELES--(BUSINESS WIRE)-- MedMen Enterprises Inc.
Is Tilray going to buy MedMen?
Cannabis company Tilray acquires stake Medmen notes in bet on U.S. legalization. Tilray stock jumped nearly 5% in extended trading on Tuesday after announcing an investment in American cannabis retailer Medmen.
Is MedMen making money?
MedMen Reports 55% Year-Over-Year Quarterly Revenue Growth and Second Consecutive Quarter of Growth in Both Revenue and Retail Adjusted EBITDA.
Who bought out MedMen?
AscendAscend will pay MedMen $74 million at closing. Ascend said it has already paid $4 million as a deposit.
Should I buy Mmnff stock?
The consensus among Wall Street research analysts is that investors should "hold" MedMen Enterprises stock. A hold rating indicates that analysts believe investors should maintain any existing positions they have in MMNFF, but not buy additional shares or sell existing shares.
How much debt is MedMen?
MedMen fights to keep NY marijuana permit, meet $114 million debt deadline.
Will Tilray bounce back?
As the cannabis market recovers, Tilray should therefore be one of the first to rebound based on its diversified portfolio — all while holding onto the top spot in the Canadian market. The post Why Tilray Will Be the First Cannabis Stock to Bounce Back appeared first on The Motley Fool Canada.
How many MedMen locations are there?
Our team of product experts offer an unparalleled shopping experience at all of our 25+ stores across 6 states — California, Nevada, Illinois, Arizona, New York & Florida.
Can I invest in MedMen?
No, but MedMen stock can be purchased through a brokerage firm, including online brokerage services.
When should you move from stocks to bonds?
If you are age 60, then 60% of your assets should be in bonds. Today, however, this rule might not have the same effect it once did. There are many reasons for this, but one is because the bond market, while not as risky as the stock market, is always changing.
The cannabis sector worsens under pressure
According to MedMen’s press release, the changing environment for the overall cannabis sector partly caused the termination of MedMen and PharmaCann deal. Cannabis stocks are under pressure. The increasing political and macro-economic uncertainties and rising regulatory scrutiny are taking a toll on overall investor sentiment.
MedMen plans to focus on other markets
Besides, MedMen has now planned to focus on California’s recreational marijuana market. Also, the company plans to focus on other core retail markets, such as Massachusetts, Nevada, Florida, Illinois, and New York.
What did PharmaCann get out of this no-deal?
PharmaCann received the short end of the stick in this no-deal agreement. According to MedMen’s press release, Pharmacann will be getting relief from the existing line of credit that MedMen gave. The debt amounts to around $21 million, including accrued interest. In exchange, PharmaCann pays a termination fee to MedMen.
MedMen is targeting California and Florida
According to the Los Angeles Times, California has the largest legal cannabis market in the U.S. The state may report legal cannabis sales worth as much as $3.1 billion in 2019. Despite this, the Los Angeles Times estimates that around 76% of the cities in California currently ban legal cannabis sales.
When did Medmen go public?
In mid-2018, MedMen first went public on the Canadian stock exchange with an implied valuation of $1.6 billion. In October 2018, a statement was released boasting the acquisition of PharmaCann, including stock and retail stores, to the tune of almost $700 million, making it the largest cannabis acquisition to date.
Who is the founder of Medmen?
MedMen was one of, if not the first, mainstream, nationwide cannabis consumer brand in the US. Co-founder Adam Bierman was hailed the 'Steve Jobs of Weed' for his aggressive entrepreneurial style and vision for the brand and the company.
How much did Medmen raise in 2016?
In July of that year, MedMen had stated they would be raising $100 million. They fell short at $60 million, but it made potential future investors take note.
When did Modlin and Bierman start working together?
In 2009, Modlin and Bierman were working together in their branding and marketing firm. They went to help a woman rebrand her marijuana company which was raking in $300,000 a month. It was then, that the duo realized they were in the wrong business.
Is Medmen still around?
MedMen was a company that was run as a tech startup from the get-go, in an industry that doesn't have the stability or the cash to support the lavish lifestyle Bierman and Modlin chose to lead. MedMen still exists as an entity, but market experts believe it will be a case of selling whatever assets are left to whatever investors they can find.
Did Medmen sell Pharmacann?
In November, they made a number of layoffs, didn't continue their retail expansion and moved their stake into a cannabis-focused real estate investment trust. By December, MedMen announced that the company would be selling up its assets in Arizona and Illinois, and reduced its workforce by more than 40% in the month.
Is Medmen a public company?
In May 2018, MedMen went public. Due to the federal illegal status of cannabis, they chose to begin trading on the second-tier Canadian Securities Exchange.
Why did Medmen stock drop?
MedMen stock plummeted through 2019, as the company abruptly killed a merger with PharmaCann, laid off staff and curbed its expansion plans. Bierman and Modlin slashed their salaries after months of criticism that they were too high. The CFO spot became a revolving door.
How much did Medmen stock jump?
MedMen stock jumped 6.7% to 44 cents over the counter. Other U.S. and Canadian marijuana stocks fell. MedMen's board named Ryan Lissack, the company's chief operating officer and chief technology officer, as interim CEO. Bierman, who co-founded MedMen, will stay on the company's board for now. He will still hold millions ...
When did Adam Bierman step down as CEO of Medmen?
California-based cannabis retailer MedMen ( MMNFF) on Friday said that Adam Bierman would step down as CEO on Feb. 1, after months of concerns about the company's culture, finances and expansion strategy. MedMen stock jumped 6.7% to 44 cents over the counter.
Does Medmen pay Bierman?
MedMen said it has agreed to compensate Bierman for the decision to leave and give up the shares. The value of those shares, and any additional compensation, will be decided by a committee of independent directors. That committee will be formed after MedMen's next annual shareholder meeting, set for Feb. 21.
Who sued Medmen?
One former CFO, James Parker, sued the company, alleging wrongful termination and other excesses — including using company money to pay for a Cadillac Escalade and a Tesla SUV for the two founders. Based on an analysis by Marijuana Business Daily last month, MedMen had only a few months' worth of cash coverage.
Who is the analyst for Stifel GMP?
Stifel GMP analyst Robert Fagan , in a research note, said that voting control of the company thus "effectively shifts" to Wicklow until the end of the year. However, Fagan said the company still generates strong sales. And other analysts said investors would likely applaud Bierman's resignation.
Who is the executive chairman of Medmen?
Modlin has granted a proxy over his super-voting shares to Ben Rose, MedMen's executive chairman, until December.
Why is Medmen performing so poorly in 2019?
One reason why MedMen is performing dismally so far in 2019 is that the company has been embroiled in controversy. MedMen was kicked out of the New York Medical Cannabis Industry Association in February. This action came after the company's former CFO, James Parker, alleged in a lawsuit that MedMen executives created an environment that tolerated "racial, homophobic, and misogynistic epithets and slurs," as well as abuse of drugs and alcohol. MedMen denied these allegations.
Who runs the Medmen exchange?
Later in February, another controversy emerged. OTC Markets Group, which runs the over-the-counter exchange on which MedMen's shares trade in the U.S., raised questions about certain promotional activities made on MedMen's behalf.
What goes up must come down. But is the opposite true for this top U.S. marijuana stock?
Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Follow @keithspeights
Where is the Medmen market?
MedMen's biggest market is in California. The state's recreational marijuana market got off to a rocky start in 2018. However, as the market improves, MedMen is poised to benefit.
Who bought Pharmacann?
The company hopes to close later this year on the biggest acquisition ever in the U.S. cannabis industry. MedMen is buying PharmaCann for $682 million. CEO Adam Bierman views the deal as "a transformative acquisition that will create the largest U.S. cannabis company in the world's largest cannabis market." With the PharmaCann acquisition, MedMen will have operations in 12 states that together account for over half of the U.S. population.
Does winning media allow Medmen stock?
The problem was that Winning Media included some statements in the article that encouraged investors to purchase MedMen stock. OTC Markets Group's policies don't allow companies with shares listed on its OTC exchanges to engage in any promotional activities that use sensational language to describe growth prospects.
Is Medmen ripe for a comeback?
So is MedMen ripe for a comeback? Maybe so. However, the company remains unprofitable. More bought-deal financing transactions could be on the way. Until MedMen is in a position where investors don't have to worry about dilution, my view is to take a pass on this marijuana retailer.
What happens if Medmen goes bankrupt?
If Medmen can’t use the formal bankruptcy process, their creditors still have the upper hand and will try to get their money back.
Can you make money on volatile stocks?
Traders may make a few bucks on what will no doubt be a volatile stock, but if you are a retail investor, we can guarantee that the longer you hold the stock the better your chance of losing it all.
Can Medmen pay down debt?
If MedMen were profitable, they may have been able to eventually pay down a portion of the debts with cashflow but because they lose money, the debt amount will be flat at best, while cash in the bank dwindles.
Can Medmen fight asset seizure?
MedMen could always fight the asset seizure, but that would mean more lawsuits and less flexibility, making it much more likely the company ends up running out of money and is sold for pennies anyway.
Is Medmen insolvent?
If we look at the value of MedMen’s assets, excluding goodwill and half of the intangibles, it looks like the company is already insolvent.
Is a company losing money in bankruptcy?
While the bankruptcy process is going on the company is still losing money, so the faster they can convert all the debt to new stock and get back to turning the business around the better.
Will Medmen pay back their debt?
This all seems very complicated, but the ending is simple. MedMen will eventually issue millions of new shares to pay back all the money they owe to lenders. Lenders will convert their debt to shares and the share count will increase so much that current shareholders will effectively be wiped out. Your claim to the future profits of MedMen will be so small each share could be worth only fractions of a penny in short order.
