MedMen Enterprises (CSE: MMEN) this evening revealed it has finally filed for bankruptcy – two days ago. The company has made a filing under the Bankruptcy and Insolvency Act in Canada, with B. Riley Farber being appointed as the bankruptcy trustee.
At the same time the company is claiming that its CFO, Amit Pandey, resigned over two months ago apparently on February 13, 2024. All directors of the company have also resigned, effective immediately before the filing for bankruptcy.
MedMen has also seen its California subsidiary MM CAN USA, Inc, placed into receivership as of April 23. The receivership is expected to result in a dissolution of the company and liquidation of all assets held in California, with other states in which the company holds assets expected to follow thereafter. The firms chief restructuring officer meanwhile has resigned and is now set to be the receiver of MM CAN USA.
READ: MedMen Sees CEO, Chairman Exit, Appoints Restructuring Officer
The decision to go into receivership follows the company being unable to pay its liabilities, as well as the expected enforcement of security by secured creditors.
MedMen’s most recently filed financial results, filed in May 2023, indicate that the company has cash of $7.6 million amid total assets of $91.1 million. Accounts payable stood at $43.9 million, with total current liabilities of $474.3 million.
MedMen Enterprises last traded at $0.015 on the CSE, and has been halted since January 5, 2024.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
