Different potential points for MedMen, coronavirus-driven gross sales, and digital briefings on investor intelligence

Released
17th April 2020




While an extreme situation – like the current COVID-19 pandemic – can uncover vulnerabilities that we were unaware of in some companies, it also serves to further highlight the problems that previously existed.

We saw several repeat offenders making headlines again this week.

More problems for former MedMen managers. Can MedMen part with the fight?

Former MedMen executives don’t seem to be staying out of the spotlight.

A civil lawsuit was filed this week against former MedMen CEO Adam Bierman and ex-President Andrew Modlin alleging the two used their personal property as an investment guarantee – and the investor wants the deeds.

While MedMen is not listed as a party to the lawsuit itself, the action could have a negative impact on the Los Angeles-based company’s reputation. Modlin and Bierman still have roles in the company and their names are closely related to the organization.

Will this latest move affect the company’s major restructuring? (We have analyzed the restructuring in detail here.)

It’s hard to tell, especially when the company’s name continues to make headlines for Bierman and Modlin.

Virtual briefings on investor intelligence

The current pandemic may have changed the way we do business, but business is still going on.

Over the next few months, we’re hosting a series of webinars to help you assess and adjust to these uncertain times and help you understand where the opportunities and pitfalls lie.

We started our Virtual Briefing series last week (see rerun here), and the second session will be on Tuesday, April 21 at 1 p.m. ET / 10 a.m. PT.

Take part and get insights into:

  • What to Look For When Evaluating Cannabis Investment Opportunities.
  • What the excitement of the market is doing right and wrong.
  • What could change the position of the participants in the industry?

The full schedule is available here.

In each of these questions, we want to make sure we answer your questions. Email us in advance [email protected].

The earnings season is advancing

In this issue, which continues, a number of cannabis companies released their profits this week.

Here are the highlights of the companies we monitored:

• • The Valens Co., which this week traded as VLNS on the Toronto Stock Exchange, reported a positive adjusted EDITDA of CA $ 14.3 million for the first quarter.

However, the company found that it exhibited weakness in certain areas of its business from the end of the first quarter through the beginning of the second quarter.

President Jeffrey Fallows noted on the conference call that Valens will accelerate white label manufacturing due to the company’s changing demand.

Read more in the transcript here.

• Based in Nevada Planet 13 also reported gains this week. Prior to the pandemic, the experience business traffic came from tourists, an executive told Marijuana Business Daily.

“Now it’s 100% local market,” said David Farris, vice president of sales and marketing. The full copy of the call for prizes can be found here.

• Aphria’s Ontario-based earnings beat consensus estimates for the third fiscal quarter ended February 29th.

Management noted that prior to the pandemic declaration, consumer demand was strong in all markets and the company benefited from being rated “material” in most of the markets in which it operates, particularly Germany.

You can find the full protocol here.

Categories: Analysis, Weekly Follow-ups

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