MedMen Enterprises is slashing its latest funding round as the firm’s stock tumbles and the California cannabis company hunts for a new chief financial officer.
The multistate cannabis firm revealed Friday that CFO James Parker resigned.
The company appointed Jim Miller, vice president of accounting, as interim CFO while the firm searches for a replacement for Parker.
The firm also announced that it was scaling back its previously announced bought deal financing from 120 million Canadian dollars ($90.3 million) to CA$75 million ($56.4 million) in response to a global market selloff, according to CEO Adam Bierman.
“Shortly after the (financing) announcement, the global market experienced a significant selloff, and as we ended last week, the investors that bought that deal would have been underwater,” Bierman said in a statement to Marijuana Business Daily.
“That did not sit right with us, and accordingly we initiated a discussion with Canaccord (Genuity) about repricing the deal, to ensure our investors would be buying the deal based on an offering ripe for the returns we constantly seek to create.”
The company declined to comment on Parker’s departure.
The firm’s stock, which trades on the Canadian Securities Exchange (CSE) as MMEN, has fallen more than 20% since the financing plan was announced in early November.
The revamped financing triggered the CSE to halt the stock’s trading on Monday, according to Green Market Report. The stock resumed trading Tuesday.
The stock had dropped to CA$4.80 ($3.61) a share in midday trading Tuesday – down from CA$7.32 ($5.50) a share on Nov. 8, one day before the financing deal was announced.
MedMen has operations in California, Nevada and New York.
Lisa Bernard-Kuhn can be reached at firstname.lastname@example.org