CEO, board chair exit marijuana MSO MedMen

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Los Angeles-based marijuana multistate operator MedMen Enterprises has experienced another shakeup in its executive suite, with CEO Ellen Deutsch Harrison stepping down on Jan. 19.

Separately, Michael Serruya, the company’s board chair, departed his position on Jan. 24, MedMen said in a filing with the U.S. Securities and Exchange Commission.

No reason was given for their departures, which are the latest changes in a tumultuous period for the company.

MedMen has seen a revolving door for executives in recent years as the company, once a stock darling, continues to divest assets across the country.

Harrison, who was earning an annual salary of $416,000, is being replaced by Richard Ormond.

Ormond, a Los Angeles-based attorney with expertise in finance and banking as well as cannabis regulations, will serve as chief restructuring officer, the company said.

It’s unclear if the company is required to pay a severance to Harrison, who held the CEO position for six months.

Serruya had been chair since 2021.

Harrison took the reins from Edward Record, who held the chief executive position for about 14 months starting in April 2022.

Before Record’s appointment, Serruya was interim CEO from November 2021 to April 2022.

At the time, Serruya was MedMen’s third CEO in two years.

MedMen is also behind on its financial reporting.

In late 2023, the company said it was unable to file its third-quarter report because it was still completing its annual report for the fiscal year that ended July 1 that year.

In December, MedMen sold its assets in the Arizona and Nevada markets to privately held multistate operator Mint Cannabis.

In a regulatory filing with the SEC, MedMen said the sale was for $24 million in cash and $5.5 million of short-term seller notes, plus the assumption of certain undisclosed liabilities.

On Jan, 5, the sale of the Arizona assets was completed for approximately $14 million.

The sale of the Nevada assets was still pending subject to regulatory approval for completion, the company said in a filing.

Also on Jan. 5, the British Columbia Securities Commission, the company’s principal stock regulator, and the Ontario Securities Commission issued a general “failure to file” cease-trade order after the company missed its filing deadlines for its annual and quarterly reports.

On Jan. 11, the company was notified by the OTC Markets Group that it had been moved from the OTCQB market to the OTC Expert Market for the same reason.

In 2021, Canadian licensed producer Tilray Brands acquired a majority position in MedMen’s amended convertible notes for $165.8 million.