California-based cannabis multistate operator MedMen Enterprises is warning investors that it might not have enough money to “meet its obligations” for the next year and that there are questions about its ability to stay in business.
MedMen’s latest quarterly filing with securities regulators noted that the company has only $15.6 million in reserves and a working capital deficit of $137.4 million.
MedMen also said in the Feb. 2 filing that it has defaulted on some debt payments and is looking into refinancing or extensions.
“The conditions described above raise substantial doubt with respect to the company’s ability to meet its obligations for at least one year … and therefore, to continue as a going concern,” the company said in the report, which was filed without an accompanying news release.
MedMen also noted that “its cash needs are significant and not achievable with the current cash flow from operations.”
Green Market Report earlier noted the company’s difficult financial situation.
MedMen has faced a long list of challenges in the past year, ranging from offloading its Florida assets for $16 million less than the original offer to the failed sale of its New York assets to marijuana multistate operator Ascend Wellness.
The company is still looking for a buyer.
MedMen did get good news recently when a lawsuit alleging the company owed more than $1 million in back rent for a Chicago property was dropped, Law360 reported.
Shares of MedMen (MMEN) were trading at 4 cents Tuesday on the Canadian Securities Exchange.