This morning, MedMen stock is under pressure and down over 5%, selling at $2.86 USD on the OTCQX.
MedMen Enterprises's (CSE:MMEN) (OTCQX:MMNFF) General Counsel and Chief Operating Officer have both left their positions in the company following a major employee. The corporate communication senior vice president has also resigned in what is seen as a way of making the company efficient under Adam Bierman, the current CEO.
Reshuffle at the Back of Ex-CFO Lawsuit
In a press release, the CEO stated that all members of the MenMen team have greatly contributed to building a leading cannabis company. This latest reshuffle comes at the back of concerns of an unhealthy work environment and overspending that were voiced recently by former CFO James Parker. In a lawsuit, the former CFO alleged that the work environment at MedMen Enterprises was replete with homophobic, racist, and misogynist epithets from the president and CEO of the company.
MedMen Enterprises is seen as one of the multistate cannabis companies in the US, and Wall Street and investors have all set eyes on MedMen stock. Currently, MedMen has 19 facilities in various states employing over 1000 people. In the second quarter of 2019, the company posted $29.9 million in sales in the US and Canada.
Increasing Operational Expenses
The rapid expansion of MedMen has cost the company greatly. In 2018 the company acquired several dispensaries in Arizona, Illinois, and North Carolina. Among those acquisitions was PharmaCann for $682 million.
MedMen stock faces headwinds, with the company reporting $61.8 million in operating expenses spanning across marketing, technology, and corporate overhead. In March, Gotham Green Partners invested in a $250 million convertible note, which is great news for investors looking to invest in MedMen stock.
Last week, MedMen stock went up after reporting unaudited Q3 2019 results.
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