MedMen Fights To Turn Around Finances, But Challenges Linger
Challenges include a high debt load, ongoing losses and a small cash cushion
Financially strapped MedMen Enterprises is showing modest improvement, raising the possibility that the California-based multistate marijuana operator has hit bottom and is beginning to benefit from its restructuring and turnaround plan.
But huge challenges remain, including a high debt load, ongoing losses and a small cash cushion.
In another sign of financial distress and a red flag for investors, MedMen’s liabilities greatly exceed its assets – a situation known as negative stockholders’ equity.
The good news: MedMen’s sales hit $35.6 million in the company’s fiscal 2021 first quarter ended Sept. 26, up from $27.4 million in the previous quarter.
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