MedMen Enterprises Inc. Archives - Green Market Report

StaffMay 11, 2022
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The Daily Hit is a recap of the top cannabis business stories for May 11, 2022.

ON THE SITE

Ascend Wellness Holdings

Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) reported its financial results for the first quarter ending March 31, 2022. Total revenue of $101.2 million decreased 0.8% quarter-over-quarter and increased 33.4% year-over-year. Ascend stock jumped over 5% in trading to close at $3.20. Ascend also reported that it had a net loss of $27.8 million or a loss of $0.16 per basic and diluted common share during the quarter, compared to a net loss of $16.5 million in the fourth quarter of 2021. Read more here.

MedMen Surrenders Assets to Ascend Wellness

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) finally agreed to close the deal to sell its New York assets to Ascend Wellness (OTC: AAWH). The two companies had initially agreed to the transaction, but then MedMen was accused of having “buyer’s remorse” by Ascend when it tried to pull out of the deal. The two companies then engaged in a nasty legal battle with MedMen accusing Ascend of greasing politicians‘ hands in the state. Read more here.

Harborside Inc. and Pelorus Equity Group

Pelorus Equity Group completed the second and final tranche of its previously announced $77.3M non-dilutive real estate debt financing with Harborside Inc. (CSE: HBOR) (OTCQX: HBORF). The initial funding included three individual loans to Harborside, Urbn Leaf Holdings Inc., and Loudpack JV Corporation with a second tranche made available upon the final closing of the three-way merger. The proceeds were used primarily to retire certain existing loans and provide additional working capital. Read more here.

Agrify Beats Revenue Estimates

Agrify Corporation (Nasdaq: AGFY)  announced financial results for the first quarter ended March 31, 2022, as revenue increased 271% to $26 million for the first quarter versus $7 million for the prior-year period. This was also higher than Agrify’s fourth-quarter revenue of $25.3 million and beat the Yahoo Finance average analyst estimate for revenues of $25..3 million. The stock price was up by over 6% in early trading to lately sell at $2.60. Read more here.

Goodness Growth

Goodness Growth Holdings, Inc. (CSE: GDNS) (OTCQX: GDNSF) reported financial results for its first quarter ended March 31, 2022. Goodness Growth had total revenue in the first quarter of $15.6 million, an increase of 18.2% as compared to the same time period in 2021. The net loss in the quarter was $14.6 million versus a net loss of $6.9 million in the first quarter of 2021. Read more here.

GMR Women’s Leadership Awards: Narim Jarrous

Narmin Jarrous manages operational planning and positioning for all developmental strategies within the Exclusive Brands organization, while also leading the teams’ Social Equity efforts, determined to lift up communities that have been disproportionately impacted by the prohibition of marijuana. Read more here.

Psychedelic Medicine Patents

One of the most important aspects of the psychedelics business—and one that is becoming more contentious—is about securing and protecting the patent for the specific molecule or synthetic that a psychedelics company is banking on because it can essentially protect the investment of millions of dollars a startup spends on setting up and running clinical trials, hiring expensive medical staff and other business development expenses. Read more here.

Targeting Female Cannabis Brands (VIDEO)

On April, 28, 2022, the Green Market Report hosted its first Women’s Summit in New York City. This panel was titled “Targeting Female Brands” and featured a stellar lineup of successful women including Cannaclusive Founder Mary Pryor, Humble Boom Founder Solanje Burnett, CMO of Trube Tokes Kymberly Byrnes and moderated by Politico’s Mona Zhang. More here.

IN OTHER NEWS

Harborside Inc.

Harborside Inc. (CSE: HBOR) (OTCQX: HBORF), a California-focused, vertically integrated cannabis enterprise, today announced it opened two new retail stores in California, bringing its total retail store count to 13, with a new Harborside-branded store in San Francisco, and a new Urbn Leaf-branded store in La Mesa, located in San Diego County. Read more here.

FSD Pharma Inc.

FSD Pharma Inc. (NASDAQ:HUGE) (CSE:HUGE) (FSE:0K9A), a life sciences holding company dedicated to building a portfolio of assets and biotech solutions, has closed the sale of non-core assets for $16.4 million. The company has sold its former cannabis processing facility, located in Coburg, Ontario, which it acquired for $5.5 million in November 2017. The property includes a 26.1-hectare parcel of land and a 50,800 square meter building. Read more here.

 

 

 


Debra BorchardtMarch 30, 2022
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Ascend Wellness (OTC: AAWH) fired its latest shot in the battle to force MedMen (OTC: MMNFF) to complete the previously agreed-upon sale of the company’s New York assets. On Monday, the company filed its latest documents with the court calling out MedMen’s accusations of political influence peddling. Ascend is arguing that MedMen is using the accusation as a way to distract and stall the acquisition process.

Background

Readers may recall that MedMen found itself in financial trouble at the beginning of 2021 and agreed to sell most of the ownership of its New York assets to Ascend. However, the New York cannabis regulatory bodies were in disarray throughout the year as the state ushered in a new governor. The newly-appointed Governor Kathy Hochul jump-started the group by quickly naming members of the Cannabis Control Board. Once the group got up and running, the MedMen license transfer had been in the pipeline for months and the clock was running out. As MedMen realized it had probably sold the properties too cheaply, it was in no hurry to see the deal approved and completed. Ascend on the other hand was pushing the regulators for an answer, which it finally got on December 16, 2021.

MedMen argued that the approval was conditional and not final. The company saw this as its way out of the deal and has insisted that the final approval by the regulators didn’t arrive in time. Then the company went on to accuse Ascend of political peddling by donating to a campaign for Governor Hochul in order to speed up the approval process. MedMen claimed that certain Ascend executives attended certain campaign fundraisers, which it then walked back.

Well, MedMen said it was incorrect in its accusations but refused to back down on its claims. Saying the peddling still occurred, it just had the dates and people wrong.

Ascend Wants MedMen’s Claims Dismissed

The latest court document points out some inconsistencies in MedMen’s argument. If MedMen is right that the final approval never happened, then how could Ascend have bought the approval through influence peddling? That would mean the lobbying campaign was a failure.

Additionally, Ascend said in the filing that the Investment Agreement required both Ascend and MedMen to work together to obtain government approval ‘as promptly as possible.’ and that both “parties agreed to use “commercially reasonable efforts” to ensure that all closing conditions were satisfied, including obtaining regulatory approval for their transaction. At bottom, MedMen pleads that Ascend fulfilled that contractual obligation by exercising its constitutional rights to engage in the political process to ensure the parties’ achieved the benefits of their bargain.”

MedMen asserted that on December 8, 2021, AWH NY President Andrew Brown attended an in-person fundraiser for Governor Kathy Hochul in Manhattan and that Ascend CEO Abner Kurtin met with “senior state executive officials” in Albany on December 10, 2021. Ascend said Brown could not have attended a fundraiser in Manhattan on December 8, 2021, because
he was in Albany that entire week appearing in federal court pro bono on behalf of an indigent party, and Kurtin could not have met with anyone in Albany on December 10, 2021
because he was in Florida. MedMen didn’t give this detail when it tried to walk back its accusations.

MedMen’s Own Political Moves

Ascend went on to suggest that MedMen’s more guilty of political peddling than Ascend is. “MedMen’s description of its own conduct gives away the game it is playing. After pleading
that it retained “a public strategy firm,” “regulatory counsel,” “government relations professionals” and “a regulatory consulting firm,” and worked to convince government officials of “the benefits to New Yorkers from the transaction all to achieve the very same purpose as Ascend—obtaining regulatory approval—MedMen cannot explain why Ascend’s lobbying efforts
breached the implied covenant but MedMen’s did not.”

The filing also says, “MedMen now alleges that “lobbyists at Dickinson & Avella” somehow “arranged” a “meeting at which state officials associated with the Office of the Governor discussed the application for approval of the MedMen-Ascend transaction. But MedMen does not allege that anyone from Ascend (or Dickinson & Avella) attended that meeting, nor does it explain how this meeting was supposedly “arranged. Adding to the irony is that MedMen’s complaints center on Dickinson & Avella, the very same firm MedMen retained to
lobby New York State officials on MedMen’s behalf just one year earlier.”

Plus, Ascend says “MedMen acquired its New York License in 2017, the same year in which it donated at least $50,000 to Governor Andrew Cuomo and just months before it donated
at least an additional $90,000 to Governor Cuomo and at least $20,000 to other New York officials, including a $25,000 donation to Governor Cuomo “the day before the company opened a dispensary on Fifth Avenue.”


StaffFebruary 14, 2022
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Late after the market closed on Friday, MedMen Enterprises Inc. (OTCQB: MMNFF) announced that its Chief Revenue Officer Tracy McCourt was resigning effective March 4, 2022. McCourt has only been in the job for a little over a year. It was a new role that was described as leading the omni-channel marketing strategy as well as the company’s buying, merchandising and business intelligence efforts. She was hired by the former CEO Tom Lynch.

In her past, McCourt led the strategy for the brand affinity team at Zappos, where she developed the brand marketing strategy to align business goals with merchandising strategy. Before joining Zappos, she was the Chief Marketing Officer for Frederick’s of Hollywood, where she increased the net operating profit of the division by 84% in her first year and then drove subsequent fiscal year profit expectations by double-digit growth year-over-year by creating operational efficiencies and new revenue opportunities.

“We appreciate Tracy’s contributions to the organization these past 14 months and wish her well in her future endeavors,” said Michael Serruya, MedMen’s CEO & Chairman.

In January, McCourt was named President of Emerald Village West Hollywood, the official marketing organization for licensed cannabis businesses in West Hollywood. At the time she said, “It’s an honor to lead an organization dedicated to promoting West Hollywood’s vibrant cannabis industry. Working together with a group of diverse cannabis retailers in the community, we’re positioning WeHo as the capital of cannabis culture and curated experiences for tourists and locals alike.”

MedMen seems to be in a constant state of upheaval. The company recently won a contentious lawsuit with its former CFO James Patterson and is trying to claw back money from Patterson. The company is also currently fighting its agreement to sell its New York assets to Ascend Wellness Holdings. Last week, the California-based cannabis company accused New York state cannabis regulators of being influenced by campaign money in order to speed up the approval of the acquisition.


William SumnerJuly 10, 2019
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It’s time for your Daily Hit of cannabis financial news for July 10, 2019.

On the Site

Canaccord Genuity Increases Its Long-Term Growth Outlook for U.S. Cannabis

Analysts with Canaccord Genuity (CG) have increased their 2019 to 2022 long-term growth outlook for the U.S. cannabis industry from 19% CAGR to 20%. According to the report, the modest increase was attributed primarily to increased expectations for Illinois’ adult-use market, as well as recent positive trends in the Nevada and Massachusetts market.

Gotham Green

Gotham Green Partners, with participation from Wicklow Capital, has agreed to an additional $30 million in an equity commitment to MedMen Enterprises Inc. (CSE:MMEN) (OTCQX:MMNFF), bringing the total financing commitment to $280 million. To date, Gotham Green Partners has funded $100 million of the total commitment.

KushCo

KushCo Holdings, Inc. (OTCQX: KSHB) announced its financial results for the third quarter ending on May 31, 2019, after the market closed on Tuesday. Net revenue was $41.5 million, representing a quarter-over-quarter increase of 17.9%.On a GAAP basis, gross profit was 17.8%. On a GAAP basis, the net loss was $10.6 million, up from $9.2 million in the same period of the previous year.

Extractors Celebrate Their 710 Holiday – Dab Day

Extractors get their own holiday every year. July 10, also known as 7/10 has been fondly named “Dab Day” within the cannabis community. Spelling “OIL” when flipped upside-down, 7/10 is the day when cannabis concentrates and extracts are celebrated, and sales data is showing that cannabis consumers are eagerly participating in the celebration.

In Other News

GrowGeneration Corp.

GrowGeneration Corp. (OTCQX: GRWG) announced today that former Home Depot CEO, Bob Nardelli, will join the company as a strategic advisor, providing advice to the company’s CEO and Board of Directors on matters related to supply chain, merchandise, branding, distribution, new product introductions, pricing and channel selection. “Bob is a globally recognized business visionary.  He comes with a strong track record of executive operations to generate accelerated, profitable growth and shareholder value across many industry verticals that are of great interest to us,” said GrowGeneration CEO Darren Lampert.

Veritas Pharma

Veritas Pharma Inc. (CSE: VRT) (OTC: VRTHF) (Frankfurt: 2VP) announced that it has sold its 50% interest in 3 Carbon Extractions to Yari Nieken for $375,000. According to interim CEO Peter McFadden, the sale of its interest is part of the company’s wider restructuring efforts. “The sale of our interest in 3 Carbon was taken as part of the restructuring of the Company with aims to consolidate and focus the Company through assets that directly contribute to the advancement of our mission. Currently neither our research nor our operations aligned with our interest in 3 Carbon,” McFadden said.


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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