MedMen (MMEN.C) owns 33 cannabis retail stores across 9 states.
Gaia Grow Holdings’ (GAIA.V) hemp clean bill of health provides optimism in an industry starving for good news
The cannabis markets are sorely in need of some good news and better business practices. But if there’s a silver lining to all of this graft and double-dealing, it’s that in a market full of liars, cheats and thieves, the good companies doing good business have the opportunity to stand out.
So the braintrusts over at MedMen (MMEN.C) have devised a new and novel way to staunch their company’s steady and consistent bleeding: they’re going to lay enough people off that they reduce their overhead to a sustainable rate.
Cresco Labs (CL.C) and Origin House (OH.C) have updated the terms of their $1.1B acquisition, repricing the all-stock transaction to match declining share prices since the deal’s announcement in April.
“Fiscal 2019 was a transformative year for Medmen, with over two million completed retail transactions to date and revenues increasing 227% year-over-year,” said Adam Bierman, Medmen co-founder and chief executive officer in a news release that should see the company gutted on the markets Tuesday.
Sometimes a deal broken is a good deal for shareholders, especially if you give a red rat’s behind about your favourite company having enough money to survive the year. Lately, we’re seeing a lot of deals that, at one time, were announced with much fanfare, being quietly dropkicked off the bridge as once high flying companies realize they need to make more than they spend.