Financially strapped MedMen Enterprises is showing modest improvement, raising the possibility that the California-based multistate marijuana operator has hit bottom and is beginning to benefit from its restructuring and turnaround plan. But huge challenges remain, including a high debt load, ongoing losses, and a small cash cushion. In another sign of financial distress and a red flag for investors, MedMen’s liabilities greatly exceed its assets – a situation known as negative stockholders’ equity. The good news: MedMen’s sales hit $35.6 million in the company’s fiscal 2021 first quarter ended Sept. 26, up from $27.4 million in the previous quarter. Net losses totaled $32.8 million, but that was down sharply from an $87.4 million loss during the same period of 2019. MedMen’s interim CEO called the results “transformational.” But analysts remain cautious.
Marijuana Business Daily, 12/21/2020 06:30:00
Open article: https://mjbizdaily.com/marijuana-mso-medmen-fights-to-turn-around-finances/