The exits will reduce MedMen’s footprint to just four states.
The long-embattled Florida-based MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced Wednesday that it agreed to sell its cannabis assets in Arizona and Nevada to competitor Mint Cannabis, an Arizona-based multistate operator, and will exit those markets.
In total, MedMen will sell its subsidiary in Arizona and two dispensaries in Las Vegas. The terms of the deal were not disclosed, but the deals were a result of MedMen’s “strategic review and evaluation of divestiture opportunities,” according to a statement from the company.
MedMen CEO Ellen Deutsch Harrison, who took the reins at the struggling multistate operator in July, said the company has made “good progress in our restructuring efforts.”
“These transactions will bolster liquidity in the short term, reduce liabilities, and enable the company to focus on operating efficiencies and executing our long-term asset-light growth strategy in our core markets,” Harrison said.
Mint Cannabis’ CEO, Eivan Shahara, celebrated the agreement, which gives the company MedMen’s Talking Stick dispensary in Scottsdale and a grow facility in the Arizona town of Mesa, along with the pair of Las Vegas shops.
“Mint Cannabis is pleased to have reached an agreement with MedMen and has strong ambitions to continue to build our footprint through both organic and strategic growth across various key markets in the U.S.,” Shahara said.
The exits leave MedMen with a marijuana industry footprint in just four states: California, Illinois, Massachusetts, and New York, according to the company’s website.
MedMen also notified stock regulators last month that it would be late in filing its third quarter financial reports for the three months that ended Sept. 30, but said it would have the filing in by Dec. 13. But the quarterly report has yet to appear on SEDAR, the Canadian database for all companies that trade on the Canadian Securities Exchange.
The company was issued a management cease trade order by the British Columbia Securities Commission on Nov. 1 as part of the filing delay.
The last time the company reported quarterly earnings was in May, when it released its third quarter fiscal 2023 results for the three months that ended March 25. At that point, MedMen had a working capital deficit of $383 million and just $7.6 million cash on hand.
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