Here’s Grizzle’s analysisand per our image they’ll be needing that nurse now. Let’s hope she’s not a stoner

Grizzle was first to lay out the true scale of the problems facing MedMen and warned investors in October that the company was in a debt-fuelled death spiral with very few ways to escape.

This quarter did nothing to change our thesis.

Medmen cut the cash burn down to $56 million from $95 million last quarter and has another $115 million or so they can borrow, but with $11 million of quarterly interest expense against only $22 million of gross profit and negative $30 million of cashflow, it’s only a matter of time before the bill will come due.

MedMen will limp along for another 6-12 months until they max out the borrowing base from Gotham Green and run out of money. It’s possible they cut spending enough to make it to October, but with $77 million of debt due October 1st, that is likely when this sad story finally ends and investors are wiped out. Bondholders will own the company one way or another.
Read the full report
In the report we note that Grizzle don’t talk about Med Men’s media aspirations, also looking decidedly shaky. Dope Mag had been folded into High Times earlier this year and although content has improved at HT we won’t be surprised to see it up for sale by end Q.1 next year