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 sell-off, according to CEO Adam Bierman.
“That did not sit right with us, and accordingly we initiated a discussion with Cannacord (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.”“Shortly after the (financing) announcement, the global market experienced a significant sell-off, 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.
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.
To Read The Rest Of This Article By Lisa Bernard-Kuhn on Marijuana Business Daily
Published: November 20, 2018
Founder & Interim Editor of L.A. Cannabis News