MedMen is the poster child for the excesses of the legal cannabis market writes Grizzle here’s the introduction to their report which we suggest you read in its entirety. If their assertions are correct there’s going to be a lot of people who will be wondering where all that money went
Huge management pay packages, even larger spending and new shares, new shares, and more new shares.
With the capital watering hole evaporating as we speak, MedMen is facing a reckoning.
The company had only $34 million of cash in the bank as of June 29th while burned $95 million of cash a quarter on operations and facility construction.
With a balance sheet that looks like MedMen ran out of cash in August, investors need to be asking themselves, is MedMen effectively bankrupt?
In the last six months MedMen borrowed $135 million out of a total $250 million, not to mention another $30 million equity deal through Wicklow Capital and Gotham Green. This cash is keeping the lights on.
Looking ahead to where MedMen’s cash balance will likely sit at year end, we find a company just hanging on by a thread.