We’ll let you plough through the entire release but we’d highlight the following two quotes… “Executes new financing that will result in US$37 million in proceeds through new equity and additional debt” and this “an expansion of the Company’s corporate SG&A initiatives through a new round of cost reductions” . Cost reductions, as we all know, means divesting oneself of human capital.
Here’s the introduction to the release
MedMen Strengthens Balance Sheet, Provides Updated Guidance and Enhances Corporate Governance
- Executes new financing that will result in US$37 million in proceeds through new equity and additional debt
- Agrees to amend maturity date for the Company’s US$78 million term loan from October 2020 to January 2022
- Enhances corporate governance through grant of super-voting share proxy
- Additional cost reductions targeted to result in corporate SG&A of US$65 million on an annualized basis
- Provides revenue and EBITDA guidance for fiscal year 2020 and 2021
LOS ANGELES–(BUSINESS WIRE)–MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) (“MedMen” or the “Company”), a leading cannabis retailer with operations across the U.S., today announced several financial arrangements and corporate updates that will strengthen the Company’s balance sheet and enhance overall corporate governance. Updates include: 1) the execution of financial agreements (“Financing Plan”), which includes US$37 million in financing; 2) an amendment to certain of the Company’s outstanding debt; 3) an expansion of the Company’s corporate SG&A initiatives through a new round of cost reductions; and 4) enhanced corporate governance with the Company’s co-founder Andrew Modlin granting a limited proxy to Ben Rose, Executive Chairman of the Board with respect to Mr. Modlin’s Class A Super Voting Shares for a period of one year.
“FY 2020 and FY 2021 Financial Guidance”
“Today’s announcements are a clear indicator of our ability to execute on capital allocation and cost saving initiatives to position MedMen for improved, long-term growth,” said Adam Bierman, MedMen Co-founder and Chief Executive Officer. “Our long-term investors have shown confidence in our strategic direction and industry-leading retail brand. With this strong level of support, we can now further focus management’s attention on maximizing our core assets while also reducing our corporate expenses to achieve positive EBITDA in calendar year 2020.”
Investors should certainly take a closer look at what’s being said at
