MedMen creditor seeks to seize cannabis firm’s former execs’ homes

A MedMen Enterprises creditor is claiming in a civil lawsuit that three men with ties to the California-based marijuana company – including former CEO Adam Bierman and ex-President Andrew Modlin – owe the deeds to their personal homes as part of an investment guaranty from late 2019.

Alaska-based Milestone Investments filed the suit against MedMen Chief Strategy Officer Christopher Ganan, Bierman and Modlin in California Superior Court in Los Angeles County.

Bierman and Modlin stepped down from their MedMen leadership posts in January.

But Bierman remains a member of the board of directors and Modlin is now the company’s chief brand officer, according to the company’s website.

Ganan is the Los Angeles-based multistate operator’s chief strategy officer.

Milestone alleges that, as part of an investment deal in December 2019, the three agreed to enter into a “pledge of their personal residences in the form of a mortgage or deed of trust” as collateral for Milestone’s purchase of 23.7 million shares of MedMen stock for just under $10.2 million.

The creditor also loaned the group an additional $2 million, which they were reportedly going to use to purchase another 4.6 million MedMen shares.

But, the suit alleges, Bierman and Modlin failed to live up to their end of the arrangement, though Ganan provided a deed of trust in February for his Los Angeles home. The company sent notices of default on the guaranty to all three in March.

“In the days and weeks following defendants’ execution of the guaranty, Milestone repeatedly asked defendants to provide Milestone with deeds of trust to their personal residences as required,” the suit noted. “Defendants did not comply.”

Bierman, Modlin and Ganan and their attorneys could not immediately be reached.

A MedMen spokesman declined to comment, noting the company isn’t a party to the suit.

The lawsuit requests:

  • A jury trial.
  • That the court order Bierman and Modlin to “provide Milestone either a mortgage or deed of trust securing Bierman and Modlin’s personal residences.”
  • Damages for breach of guaranty.

In March, MedMen announced a restructuring of its capital structure and operations.

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3 comments on “MedMen creditor seeks to seize cannabis firm’s former execs’ homes
    • Jeff Chung on

      I don’t have any personal feelings towards these guys but I can’t help but to disagree with the notion of easy come easy go.

      Think about their behavior and the predicament they’re in with their homes.

      If they were doing so great, why were they forced to tie their personal homes into the business? The point of having a corporate entity is so that you don’t have to risk your personal assets. If they had to use their personal homes as collateral, I’m pretty sure that’s a sign of not yet having achieved financial freedom. Which doesn’t even take that much to accomplish in reality. She should have had enough money to not give up their homes as collateral.

      And the fact that all three of them still have to work there probably means they simply haven’t yet had a significant cash withdrawal from the company.

      You heard what Milestone said, they had to loan the guys $2 million dollars and the guys were so hard up for cash that they had to lie about how the money would be spent. They didn’t even fulfill their end of a simple deal by turning in their house deeds. Those guys are stressed.

      The easy go part seems accurate and unfortunate due to the pandemic, but I don’t see where you get the easy come from.

      And is there a reason to be celebrating their misfortune? I’m asking because I really have no idea. Have these guys done something in the past to deserve such a lack of compassion for the circumstances they’re in?

      • AJ on

        “they simply haven’t yet had a significant cash withdrawal from the company”

        Oh, boy… read the financials. The boys made buh-buh-BANK.

        This company was doomed from birth. The virus had nothing to do with it. Actually, the pandemic created an uptick in rev for MM.

        I have a lack of compassion for people… who lack compassion. That describes the MM founders quite accurately. They have lived lavish lives at the expense of their shareholders.

        Disclosure: I have been shorting MM since day one. Riding $7 down to $1 was invigorating! Shorting from 20 cents? Still a good trade.

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