Evidently, now is a bad time to hold equity in Medmen Enterprises (CSE: MMEN) – that is, if you’re one of the companies original founders. Last night, a large data dump was filed by both Adam Bierman and Andrew Modlin, the founders of the company. Within, they both reveal that they have continuously sold their stake in the company, day after day, in the month of July.
In the case of Adam Bierman, he revealed that as of July 24 he had just 2,557,097 common shares of the issuer remaining within his personal control – after finishing off July with a position of 5,733,973 common shares following the conversion of some indirect holdings. In total, 3,176,876 common shares were sold by the founder, for prices ranging from $0.23 to $0.31 per share. Gross proceeds collected from the sales amounted to an estimated $818,864.
It should be noted that Bierman still has an additional 2,606,922 common shares held indirectly in a trust, as well as 449,377 common shares held indirectly via a separate entity.
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In the case of Modlin, Andrew started the month with a whopping 9,581,777 shares of the issuer before his selling frenzy began. He finished the month with just 5,956,655 common shares – indicating a total of 3,625,122 shares were sold, at average prices between $0.23 and $0.30. Gross proceeds are estimated at $911,121.
Outside of his direct holdings, Modlin also holds 3,056,369 shares of the equity through a separate entity as well.
On the bright side, there has been some insider purchases. However, those have come from Gotham Green Partners, who through various entities filed on Thursday that they have taken on additional secured debt in the company. A total of $5,267,042 in additional capital was placed into the company, bringing total secured debt to $168,825,299, as per SEDI filings. The debt was issued on July 2 by Gotham Green, however filings were made just this past week.
Medmen Enterprises last traded at $0.22 on the CSE.
Information for this briefing was found via Sedar and MedMen Enterprises. The author has no 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.
