California-based MedMen Enterprises, a once-thriving multistate marijuana retailer, released a grim quarterly financial reportthat detailed a whopping $96.4 million net loss in its fiscal 2020 second quarter.
On a brighter note, the company, which has marijuana stores in five states, reported that its second-quarter revenues of $44.1 million rose 49.8% from $29.42 million a year earlier.
Still, Craig Behnke, an equity analyst at Marijuana Business DailysInvestor Intelligence, described both the companys quarterly results and its outlook as grim.
MedMen faces an incredibly difficult task because it needs massive revenue growth at a time it plans deep structural spending cuts, Behnke said.
Interim CEO Ryan Lissack said in a statement that MedMen plans to continue to cut costs while embarking on a path to profitability.
MedMen’s cost-cutting including a December announcement that it was laying off 20% of its corporate-level staff.
The company’s next chapter will be defined by financial discipline and strategic growth, Lissack said.
Lissack took the reins of MedMen on an interim basis after co-founder Adam Bierman resigned as CEO on Feb. 1.Bierman alsogave up his voting control of the company.
The company trades on the Canadian Securities Exchange as MMEN and on the U.S. over-the-counter markets as MMNFF.
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Originally posted on Multistate cannabis retailer MedMen reports $96 million loss via Cannabis Industry News
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