The big question in play right now for shareholders of Medmen Enterprises Inc (OTCMKTS:MMNFF) is whether or not the company can manage to execute a turnaround given the rapid growth context that could provide a very quick “rags to riches” narrative for the stock. To help reinforce that potential, the company just announced unaudited systemwide revenue for its fiscal 2019 third quarter ended March 30, 2019.
According to the release, “Across the Company’s operations in California, Nevada, New York, Arizona, and Illinois, systemwide revenue was US$36.6 million (CA$48.8 million). This represents a 22% quarter-over-quarter increase over its fiscal 2019 second quarter ended December 29, 2018. Systemwide revenue, pro forma for pending acquisitions that have not yet closed, was US$54.9 million (CA$73.2 million) for the quarter. For the third quarter, gross margin across its retail operations was 51%1, compared to 53% in the previous quarter. The Company is expected to post its fiscal 2019 third-quarter results in May 2019.”
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.”
Find out when $MMNFF reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
As noted above, MMNFF just announced unaudited systemwide revenue for its fiscal 2019 third quarter ended March 30, 2019.
Traders will note 2% added on for shareholders of the listing during the trailing week. Moreover, the stock has seen a growing influx of trading interest, with the stock’s recent average trading volume running 13% above its longer-run average levels.
“We will continue to scale our retail footprint in the most strategic and desirable locations, providing us first mover advantage and contributing to MedMen’s top-line growth,” stated Michael Kramer, Chief Financial Officer. “The continued acceleration of sales in markets like Arizona and Nevada, as evidenced by the impressive sales at our Paradise location, demonstrates our ability to replicate the success we’ve achieved in our home state of California across the U.S.”
Currently trading at a market capitalization of $281M, 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. We will update the story again as soon as developments transpire. 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.