MedMen Enterprises Inc. (OTCQX: MMNFF) reported its consolidated financial results for the third-quarter fiscal 2021 ending March 27, 2021. Net revenue across MedMen’s operations was $32 million, which dropped from last year’s $44.1 million. This also missed the average analyst estimates by Yahoo Finance for revenue of $37.3 million. The earnings per share for the quarter were ($0.04), which beat the estimate for ($0.05). The company said the revenues increased 3.8% from the previous quarter adjusting for removal of MedMen NY Inc. from continuing operations. Net losses were trimmed to $13.7 million from last year’s $24.9 million for the same time period.
“The past quarter was defined by the reopening of retail stores, accelerated momentum in our turnaround plan and a shift towards growth,” said Tom Lynch, Chairman and Chief Executive Officer of MedMen. “As predicted, California began to rebound strongly as capacity restrictions in California fell away, with same store sales up 2.3% quarter-over-quarter and April same store sales up 11.9% over March. Additionally, we achieved the best bottom-line result in MedMen’s history. I’m pleased with the tremendous progress we have made. MedMen’s mission is to be the best-in-class cannabis retailer, and we are positioning ourselves to achieve that goal through focus, experience, improved financials and continuing to deliver the industry’s premier in-store experience. Over the next several quarters we plan to both accelerate our growth and move closer to profitability as we leverage our national brand recognition into opening new stores in Florida, California, Massachusetts and Illinois.”
For the quarter ending in March, the company has cash of $21 million. During the third quarter, MedMen raised $18.9 million in additional gross proceeds through non-brokered private placement transactions with certain institutional investors. Also during the quarter, MedMen closed on $10 million in additional gross proceeds under its senior secured convertible debt facility led by funds affiliated with Gotham Green Partners. On February 25, 2021, the company announced an investment, subject to regulatory approval, of up to $73.0 million in MedMen NY Inc., which will predominantly be used to pay down the Company’s senior secured lender.