MedMen stock is trading higher this morning after MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) announced that the company's CEO Adam Bierman would step down on February 1.
On Friday morning, the current Chief Executive Officer of the company and also its co-founder, Adam Bierman, announced his resignation from MedMen. Experts believe that this will be positive for MedMen shareholders, who have demanded a shakeup in the company’s management for quite some time.
The resignation will go into effect from February 1, and Ryan Lissack, the Chief Operation Officer of MedMen Enterprises, is going to come in as the interim CEO. However, it should be pointed out that Bierman is going to stay on as a member of MedMen's board, and it remains to be seen how shareholders react to that news.
MedMen stock is trading higher by 9.30% at C$0.59.
Key Issues with MedMen
The company hopes to become one of the biggest operators in the industry in the coming years; however, it seems that all might not be well with MedMen Enterprises at this point. It has emerged that MedMen has fallen behind in its payments to its vendors and has employed the services of a consultancy firm in order to settle those debts.
It has emerged that MedMen is considering the possibility of offering its stock as a form of payment, which may indicate that the cash situation at that company may not be particularly healthy. One supplier was given the option of opting for the full amount through class B non-voting shares of MedMen, half in one-time cash payment, or a payment plan for the full value.
The company is well known for having opened dispensaries in glamorous locations like Manhattan and Beverly Hills; however, the broader issues with the industry seem to have hit MedMen Enterprises as well. The cannabis industry has gone through a bit of a downturn over the past months, and many companies have suffered because of it.
The company is now in the middle of restructuring the business, and it is also trying to improve its financial health. Bierman stated that it is true that MedMen has ‘paused’ on making the necessary payments to vendors, but that was primarily due to the fact that the company was going through a restructuring process.
The company has also recently laid-off employees in a move to cut costs.
MedMen stock has fallen over 25% over the past two weeks.
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