In an interview with Green Market Report and in an Ask Me Anything on Reddit, Bierman argued the company's stock is "cheap... versus where it will be as we execute." He said MedMen's assets include its $1 billion in license value-- more than 10 times its current market capitalization-- national footprint and desirable store locations in New York, California and Las Vegas.
Ganjapreneur writes up key points from the Ask Me Anything and says Bierman answered some, but not all, of the tougher questions. (You can see comments that were deleted and removed here.)
- In an email obtained by MarketWatch, MedMen offered a supplier three options: 1) The full amount owed in non-voting stock, 2) A payment plan for the full amount or 3) A cash payment for half the amount owed.
- On Sunday MedMen stock was worth 44 cents per share, down from $6.49 in October 2018 and 64 cents on January 17. The company's current market cap is $92.6M according to Yahoo Finance.
- In a separate story, Green Market Report notes the company had $671M in total liabilities in September, and $43.9M in revenue for the quarter ending that month. Report called it "a fairly lopsided situation."
- In an interview with Green Market Report, CEO Bierman said "our cash position is very healthy, our balance sheet is strong."
- This comes after MedMen renegotiated terms with Gotham Green Partners and at least one other backer last year. Bierman said the restructuring will probably be done in a month. (Gotham Green Partners has close ties to Canadian cannabis company Cronos Group.)
- The restructuring has involved substantial layoffs and forced the company to exit Arizona.
- Bierman said MedMen is working with restructuring firm FTI Consulting to get its finances in order.
Key moments from the Reddit AMA:
- Bierman said he bought 1M shares of MedMen stock in December and January and has never personally sold a share of MedMen stock. "I am all in on this company." Bierman has been criticized for paying himself lavishly, but is now receiving a salary of $50,000.
- "No amount of money could secure the [store] locations we have today. "
- "I regret not implementing this cost cutting sooner," Bierman wrote.
Financial site Grizzle has a more bearish view and discusses what to do if MedMen owes you money.
- MedMen competitors CuraLeaf and Cresco Labs have recently closed on $300M and $200M in debt financing, respectively.
- U.S. marijuana companies are not eligible for bankruptcy protection. In December, National Law Review discusses this thorny issue.
- "Bargain hunters" have pushed up the value of some Canadian pot stocks.