“APPLE STORE OF WEED” DOWN ON IT’S KNEES

A once considered “Apple store of weed” with a market value of $1.7 billion as a public company, cannabis stores are experiencing a financial collapse.

MedMen a cannabis company explained that it has been facing deflates for the past five years due to excessive debt with $15.6 million left from the $137.4 million in dept.

“The conditions described above raise substantial doubt with respect to the company’s ability to meet its obligations for at least one year,” MedMen stated.

The company has already defaulted on some of its debt, the filing said, and it needs to obtain an extension or to refinance it.

In 2018, MedMen went public on the Canada Stock Exchange through a reverse merger amid a wave of cannabis businesses, early on, its shares rose to over $8, but today its stock trades for just 4 cents. Stock of Tilray Brands, a cannabis producer that is among the industry’s largest companies, is down more than 90% from its all-time high.

The reality, as in any retail business, is that opening stores is expensive and taking on debt is risky even as an increasing number of states legalize pot sales. In an effort to cut costs, it sold its stores in Florida last year, is trying to sell its New York stores, and is also attempting to renegotiate leases for the stores that remain.