Another cannabis company teeters on the edge
MedMed's CEO tried to give assurances last week. It didn't go so well
Wednesday, January 29, 2020
Last week was a wild one for MedMen, the multistate cannabis retailer based in Culver City, California. As CEO Adam Bierman was getting ready to do a Reddit AMA ("Ask Me Anything") a character named Jason Spatafora tweeted out copies of emails that, Spatafora claimed, showed that the company was unable to pay vendors in cash, and was offering to give them shares of its depleted stock instead. Like a lot of cannabis companies, MedMen grew too big, too fast, as Bierman himself reluctantly admitted. Now, he said, the goal is "sustainability." The company, 10 years old, runs about 30 stores across the country, as well as large cultivation facilities. (See also: Nickeled and Dymed - The collapse of Dionymed Brands (DYME) highlights the factors at work in the great cannabis crash)
