- Co-founder and CEO, Adam Beirman is stepping down from MedMen Enterprises Inc (MMEN)
- MedMen Enterprises Inc. is large cannabis retailer situated in the U.S.
- In 2019 the company’s share price began to rapid fall amid severe cash-flow problems
- This ultimately led to the company selling of a number of assets and, in some cases, failing to pay its vendors
- During 2019 the company’s share price dropped by over 80 per cent
- MedMen Enterprises Inc.’s board of directors stated it supports Mr Beirman’s decision
- A committee is being formed to search internally and externally for the company’s next CEO
- MedMen Enterprises Inc was up 7.41 per cent, with shares currently trading at C$0.58
Adam Bierman is stepping down as MedMen Enterprises Inc’s CEO. Mr. Bierman is also surrendering his voting shares back to the company.
One of the U. S’s largest cannabis retailers, the company had a disastrous year in 2019, closing outlets, failing to pay vendors, as well as being sued by investors who allege the company is preventing them cashing out.
The company also announced at the end of last year that it will be selling off its Arizona licences for just under C$100 million in order to raised funds.
It also announced the cancellation of a planned merger with another U.S. cannabis company, PharmaCann.
The company first went public in mid-2018 through a reverse takeover with the unlisted Canadian company OutdoorPartner Media Corporation.
During this first 6 months of trading the company’s share price shot up almost 6,000% to a height of C$8.5.
By the end of 2019 the share price was just C$0.7 and is continuing to fall.
“I continue to believe that MedMen is positioned to thrive,” stated Mr Bierman.
“It’s time for our next iteration of leadership to capitalise on the opportunity we have created.”
The company is currently forming a committee in search of new CEO and says it is looking both internally and externally. The board has stated it supports Mr Bierman’s resignation.
“This evolution will provide Adam the space to contribute to the future of MedMen and extend his commitment to the industry that he has helped pioneer,” said Executive Chairman Ben Rose.
The company has yet released its second fiscal quarter results but announced they will be made available on the 26th of February.
MedMen Enterprises Inc was up 7.41 per cent, with shares currently trading at C$0.58.