History
MedMen was co-founded in 2010 by Adam Bierman and Andrew Modlin.[10] In an interview with Green Entrepreneur, the pair said they saw a business opportunity in the emerging cannabis industry and a chance to "redefine society's relationship with cannabis". In 2018, MedMen West Hollywood was one of the first cannabis retail stores to open in California after the state's recreational cannabis laws went into effect.[11] MedMen opened its first branded retail outlets in New York[12][13] and in Nevada in 2018,[14] and opened its first medical marijuana dispensary in Florida in 2019.[15]
In April 2018, the company opened MedMen Mustang, a 45,000 square-foot greenhouse and manufacturing facility near Reno, Nevada with expectations of producing 10,000 pounds of cannabis annually.[16]
In May 2018, MedMen began construction on a second 45,000-square-foot cannabis factory in Desert Hot Springs, California. It was scheduled to open in early 2019.[17]
MedMen went public on the Canadian Stock Exchange via a reverse takeover (RTO). The company listed under the stock ticker symbol MMEN on May 29, 2018.[18]
In June 2018, MedMen announced its acquisition of a nursery and retail license to build 25 stores in Florida.[18]
In the second half of 2018, MedMen acquired dispensaries in Arizona, Northern California, and Illinois. The company also initiated a $682 million acquisition of PharmaCann, although the deal eventually fell through.[19] The acquisition would have set a record for the largest U.S.-based cannabis company buyout.[20][21] The board decided the money would be better spent in increasing market share naturally.[19]
In February 2019, MedMen announced a relationship with Treehouse Real Estate Investment Trust (“Treehouse”), a cannabis-focused REIT that had raised $133 million to acquire properties from MedMen.[22]
In 2019, MedMen former CFO, James Parker, filed a lawsuit claiming that he was wrongfully discharged; while MedMen's CEO and its board denied the claims, calling them baseless and asserting that they will prevail in court.[23] On April 19, 2019, MedMen's Chief Operating Officer Ben Cook, general counsel Lisa Sergi Trager, and senior vice president of corporate communications Daniel Yi resigned.[24] Parker's lawsuit's claims resulted in the New York Medical Cannabis Industry Association removing MedMen from its roster.[25]
In May 2019, the Journal of the American Medical Association called for a "national evidence-based regulatory regime for marijuana marketing" citing MedMen's nationally broadcast health claims.[26]
In June 2019, the Los Angeles Business Journal reported MedMen's cash burn rate $70 million per quarter as the company cut expenses by 20% from 2018 levels.[27]
On February 1, 2020, Adam Bierman resigned as CEO and surrendered all of his Class A super voting shares.[28] Ryan Lissack, MedMen's chief operating officer and chief technology officer, was appointed to serve as the interim CEO.[29]
On March 30, 2020, MedMen announced it had appointed Tom Lynch as Interim Chief Executive Officer and Chief Restructuring Officer. He previously served as Interim Chief Executive Officer of David's Bridal and before that chairman and chief executive officer of Frederick's of Hollywood.[30]
On April 26, 2024, MedMen announced that they have entered bankruptcy proceedings in Canada, and its CFO Amit Pandey resigned immediately after the announcement. MedMen USA filed for voluntary Chapter 7 bankruptcy liquidation and immediately discontinued all future operations permanently.[31]
Funding
Prior to its Canadian Stock Exchange listing, MedMen raised approximately $110 million through a private placement at an implied enterprise valuation of $1.65 billion.[32]
The company also raised nearly $200 million (debt and equity) from September 2018 through November 2018, but reported only $80 million in cash on hand at year-end. In March 2019, MedMen announced a $250 million convertible financing facility with Gotham Green Partners.[33]
