While an extreme situation – such as the current COVID-19 pandemic – can uncover weaknesses we weren’t aware of in some companies, it also serves to further highlight problems that existed before.
We saw several repeat offenders making headlines again this week.
More problems for former MedMen execs. Can MedMen separate itself from the fray?
MedMen’s former executives can’t seem to stay out of the limelight.
A civil lawsuit was filed this week against former MedMen CEO Adam Bierman and ex-President Andrew Modlin claiming that the two used their personal properties as an investment guaranty – and the investor wants the deeds.
While MedMen itself is not listed as party to the suit, the action could have a negative effect on the Los Angeles-based firm’s reputation. Modlin and Bierman still have roles at the company, and their names are closely tied to the organization.
Will this latest move have an impact on the company’s extensive restructuring? (We analyzed the restructuring in-depth here.)
It’s hard to say, especially if the company’s name keeps being included in the headlines Bierman and Modlin keep making.
Investor Intelligence Virtual Briefings
The current pandemic might have changed how we do business, but business is still being done.
Over the next few months, we’re hosting a series of webinars to assist you in assessing and adapting to these uncertain times and help you understand where the opportunities and pitfalls can be found.
Join us to get insights on:
- What to look for when assessing cannabis investing opportunities.
- What the market’s enthusiasm gets right and wrong.
- What could change the participants’ positions on the industry.
The entire schedule is available here.
In each of these, we want to make sure we’re answering the questions that you have. Email them to us in advance at firstname.lastname@example.org.
Earnings season marches on
In that theme of business continuing to happen, a number of cannabis companies released their earnings this week.
Here are the highlights from the companies we’ve been monitoring:
• The Valens Co., which commenced trading on the Toronto Stock Exchange this week as VLNS, reported positive adjusted EDITDA of CA$14.3 million for the first quarter.
The company noted, however, that it did see softness in certain areas of the business at the end of Q1 into the start of Q2.
President Jeffrey Fallows noted on the conference call that Valens would be ramping up white label manufacturing as a result of the shifting demand the company has experienced.
Read more in the transcript here.
• Nevada-based Planet 13 also reported earnings this week. Before the pandemic, the experience-focused store’s traffic came from tourists, an executive told Marijuana Business Daily.
“Now it’s 100% a local market,” said David Farris, vice president of sales and marketing. The full transcript of the earnings call is available here.
• Ontario-based Aphria’s reported earnings beat consensus estimates for the fiscal third quarter ended Feb. 29.
Management noted that consumer demand before the pandemic declaration was strong across its markets, and the company has benefited from being declared “essential” in most of the markets in which it operates, particularly Germany.
The full transcript is available here.