Medmen Enterprises Inc (OTCMKTS:MMNFF) has reported revenues of $44 million in Q1 2020 on efficient operations in Arizona, Illinois, Nevada, California, and New York. It is an increase of 105% year on year. CEO and co-founder of Medmen, Adam Bierman, said it entered 2020 with a focus on building a financially flexible company. It plans to serve the interests of shareholders by ensuring free cash flow, right-sizing the organization, and making the business more efficient.
Executive Chairman, Ben Rose, said the company has put in significant efforts since 2016 to become a recognizable cannabis brand. It continues to capitalize on the opportunities in the cannabis space and improve profitability to withstand market fluctuations in the near-term.
In California, Medmen reported a sequential growth of 9% in Q1 2020 when compared to the previous quarter. The company owns 17 retail licenses, of which are 13 are operated as Medmen stores, in California.
In Nevada, the company’s Las Vegas Location on the Paradise is the second-best performing retail store in the US. Medmen inaugurated three locations in Florida that include one retail store each in Pensacola, Key West, and St. Petersburg. In Arizona, it operates three retail locations, of which the company acquired Level Up and Monarch in 2019.
Medmen is expecting a regulatory nod for its Fenway location in Massachusetts and expects to begin the construction in 2020. In Oak Park, Illinois, the company operates a medical dispensary. It operates four medical dispensaries in New York.
Medmen is renovating the production and cultivation facilities in Nevada, Mustang. It expects to operate the factory with full capacity in Q2 2020. In Medmen stores across Nevada, the company is acclaimed to be the highest selling pre-roll brand in the past eight weeks. Apart from selling its in-house brands, the company entered deals with Nature’s Lab and Platinum Vape for the production and distribution in Nevada.
Announced over 190 job cuts
As of today, Medmen has a debt of $223 million because of extravagant spending. To achieve positive EBITDA and focus on core markets, Medmen announced job cuts of over 190 and proposed the sale of the assets. Bierman said the company plans to reduce corporate overhead and increase market share and margins.