Many traders may wonder: What’s wrong with Medmen Enterprises Inc (OTCMKTS:MMNFF)? For one thing, the company has been through some recent scandals, and investor confidence has been impacted. But the broad outlines of the play are still intact.
To further define that narrative, the company just announced that it has completed the sale of three properties to Treehouse Real Estate Investment Trust with a net proceeds of approximately $18.4 million. “These proceeds will be deployed into more accretive growth opportunities as we operationalize our national footprint,” said Adam Bierman, chief executive officer and co-founder.
Medmen Enterprises Inc (OTCMKTS:MMNFF) frames itself as a company that, together with its subsidiaries, operates in the cannabis space in the United States.
The company cultivates, produces, possesses, uses, and distributes/retails cannabis in the recreational and medicinal cannabis marketplace. As of June 6, 2018, it owned and operated 18 licensed cannabis facilities under the MedMen brand name in California, Nevada, and New York.
The company frames itself as “the preeminent cannabis company in the United States” with multiple assets and operations in California, Nevada, New York, and Florida. MedMen owns and operates licensed cannabis facilities in cultivation, manufacturing, and retail, and is one of the most well-recognized cannabis brands in the world today.
Headquartered in Los Angeles, MedMen employs more than 800 workers across the United States. It was founded in 2010 by Adam Bierman and Andrew Modlin, two visionary entrepreneurs who saw not just a tremendous business opportunity in the growing legalization of marijuana, but a chance to re-define our society’s relationship with cannabis. MedMen supports sensible, clear and just drug laws.
The Company is the single largest financial supporter of progressive marijuana laws at the local, state and federal levels, giving directly to pro-legalization groups, industry organizations and political candidates.
The company is headquartered in Culver City, California. MedMen Enterprises Inc. is a subsidiary of The Medmen Of Nevada 2 Llc.
According to company materials, “MedMen Enterprises is a leading cannabis company in the U.S. with assets and operations across the country. Based in Los Angeles, MedMen brings expertise and capital to the cannabis industry and is one of the nation’s largest financial supporters of progressive marijuana laws.”
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As noted above, MMNFF just announced that it has completed the sale of three properties to Treehouse Real Estate Investment Trust with a net proceeds of approximately $18.4 million. In all, we’ve witnessed minor losses in share pricing for the listing in the past month.
Moreover, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 35% above its longer-run average levels.
We think this may still be an interesting play, but the equation is a complex one here, and prospective investors should take care to due a proper and thorough job of research before being involved.
Now commanding a market cap of $1.42B, MMNFF has about $12.2M in cash on the books, which must be weighed relative to a mountain of over $86M in total current liabilities. The company has been pulling in significant revenues, with over $7M in Q1 of this year, representing over 630% quarterly y/y growth on the top line. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $MMNFF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MMNFF, either long or short, and we have not been compensated for this article.