MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF), a premier cannabis retailer with operations across the United States, continues to make progress in its restructuring efforts. Efforts to date have been effective, resulting in a return to positive adjusted EBITDA and a 34% reduction in payroll costs across its retail locations, cultivation centers, and corporate headquarters in the most recently reported quarter. Along with right sizing the expense structure, the Company continues to make progress on localization of store assortments and improving the product quality and profitability of its cultivation centers. Implementation later this spring of a new POS system and loyalty platform will drive increased store efficiencies as well as significantly more meaningful customer engagement.
Today the Company announced it has retained ATB Capital Markets Inc. (“ATB”) to assist in the strategic review and potential sale of one or more of the Company’s non-core assets in Arizona, Illinois, and Nevada. ATB will assist MedMen in evaluating opportunities to divest certain retail and cultivation assets in order to bolster liquidity and maximize shareholder value with an asset-light model.
Assets under strategic review include:
- Arizona: vertically integrated operations comprising of one dispensary located in Scottsdale and a 20,000 sq. ft. cultivation and production facility located in Mesa
- Illinois: two dispensaries located in Oak Park and Morton Grove
- Nevada: two dispensaries located in Las Vegas