MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) released its consolidated financial results for its fourth quarter of 2021 and for the fiscal year ending June 26, 2021. MedMen had revenue of $42 million for the fourth quarter, up 55.4% year-over-year and up 18.5% from the previous quarter. Still, the company reported a net loss of $46.2 million. This greatly increased from a net loss of $9.7 million in the previous quarter, which the prior quarter included a $32.7 million tax provision benefit.
For the full year, MedMen reported revenue of $145 million across MedMen’s continuing operations in California, Nevada, Illinois, Arizona and Florida. This declined 6.6% from the prior year, reflecting the impact of COVID-19, particularly during the first half of the fiscal year and in the Las Vegas and California markets. MedMen also delivered a net loss of $157.6 million for fiscal year 2021 versus a net loss of $526.5 million in the previous year, which prior year included an impairment charge of $246.7 million.
“The past quarter was pivotal for MedMen, defined by increased sales and EBITDA profitability at our retail stores, as well as our cultivation and manufacturing facilities,” said Tom Lynch, Chairman and Chief Executive Officer of MedMen. “We set a new record for quarterly revenue at MedMen, driven by broad-based increases in traffic and frequency of transactions across nearly all of our retail locations. Strength in California accelerated during the quarter, with revenue up 24.4% sequentially. Additionally, our improved operating results have helped us shore up our balance sheet and attract strong partners in Tilray and Serruya. As previously announced, we amended the terms of our secured debt to extend the maturity to 2028, reduced restrictive covenants and eliminated cash debt service requirements. Additionally, we added $100.0 million of new capital subsequent to the end of the fourth quarter via private placement.”
At the end of June, MedMen only had cash and cash equivalents of $11.9 million. After the quarter ended, MedMen announced that investors, led by Serruya Private Equity, purchased $100.0 million of units, which consisted of 416,666,640 Class B Subordinate Voting Shares of MedMen and five-year warrants to purchase 104,166,660. Proceeds from the private placement will allow MedMen to expand its operations in key markets such as California, Florida, Illinois, Arizona and Massachusetts, and identify and accelerate further growth opportunities across the United States.
Lynch added, “Over the next several quarters, we plan to both accelerate our growth and improve EBITDA profitability as we leverage our national brand recognition into opening new stores in Florida, California, Massachusetts, Arizona and Illinois.”