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Fortune Article Suggests That MedMen Could Be In Death Throes After Details Of Regulatory Filing Made Public

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Cannabis chain once worth $1.7 billion and called the ‘Apple store of weed’ is now nearly failing as the once-hot pot industry faces a major reckoning

A chain of cannabis stores that was once described as the “Apple store of weed” and valued as high as $1.7 billion as a public company, is near financial collapse, according to a regulatory filing.

The company, MedMen, said that it has only $15.6 million in cash remaining versus $137.4 million in debt.

“The conditions described above raise substantial doubt with respect to the company’s ability to meet its obligations for at least one year,” the company said in its filing last week.

MedMen is just the latest of the onetime cannabis darlings to face a reckoning as the industry bubble of five years ago deflates due to excessive debt, falling marijuana prices, competition from illegal sellers, and high taxes. The reality, as in any retail business, is that opening stores is expensive and taking on debt is risky—even as an increasing number of states legalize pot sales.

MedMen, based near Los Angeles, operates 23 stores including in California, New York, and Illinois. In an effort to cut costs, it sold its stores in Florida last year, is trying to sell its New York stores, and is also attempting to renegotiate leases for the stores that remain.

The company has already defaulted on some of its debt, the filing said, and it needs to obtain an extension or to refinance it.

In 2018, MedMen went public on the Canada Stock Exchange through a reverse merger amid a wave of cannabis businesses. Early on, its shares rose to over $8, but today its stock trades for just 4 cents.

Shares in other pot-related companies have also suffered as the cannabis business lost its luster with investors. Stock of Tilray Brands, a cannabis producer that is among the industry’s largest companies, is down more than 90% from its all-time high, for example, while Canopy Growth, another major player, is down a similar amount.

Read more at

https://fortune.com/2023/02/06/medmen-cannabis-store-debt-going-concern-public-listing/



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NJ: Murphy Appoints New Cannabis Commissioner – She Still Needs To Be Confirmed By State Senate

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Green Market Report

New Jersey Gov. Phil Murphy on Friday appointed medical business executive Amelia Mapp, the wife of Plainfield Mayor Adrian Mapp, to replace an outgoing member of the state Cannabis Regulatory Commission.

Mapp is taking over for Commissioner Charles Barker, who is departing the agency after serving on the panel since 2021, where he developed a reputation for being critical of the Murphy administration’s efforts on social justice within the cannabis sector and of the outsized role that large corporations have taken in the state’s marijuana trade, NJ.com reported.

Read full report at 

Shakeup at New Jersey cannabis commission

Also see 

https://www.nj.com/politics/2024/09/murphy-boots-leading-critic-of-big-weed-corporations-from-nj-cannabis-commission.html



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Give Me Strength…Bierman’s “One Man Agaianst The Establishment” Fiction Is Now Getting The Docuseries Treatment

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It was depressing enough that he was publishing a book .. Now we have to deal with somebody else who’s drunk on  the Bierman Kool-Aid.. “It’s an amazing origin story about one man’s fight against the establishment. Adam takes us on an amazing, tell-all journey of the new Wild West of hubris and greed while […]



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Cannabis Control Commission to Host Public Comment Period, Hybrid Hearing on Amendments to Microbusinesses, Delivery, Telehealth Regulations

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Starting September 16, the Massachusetts Cannabis Control Commission (Commission) will be soliciting feedback from stakeholders on the agency’s proposed regulatory changes to Microbusinesses, Delivery license types, telehealth options for patients, and prescribing allowances for providers. These draft changes were unanimously approved by the Commission at the July 19 Public Meeting and subsequently filed with the Secretary of State’s Regulations Division for publication on September 13.

Constituents will be able to provide written comment from September 16 to October 7, as well as oral testimony at a public hearing scheduled Monday, October 7 at the Commission’s headquarters at Union Station, 2 Washington Square in Worcester. Written submissions should be emailed to [email protected] with “Regulation Comment” in the subject line of the email no later than 5:00 p.m. EST on October 7, 2024.

The proposed regulatory changes include the highly anticipated change to allow delivery licensees the option of delivering marijuana and marijuana products to consumers with one Marijuana Establishment Registered Agent in a vehicle at a time, as opposed to the current requirement of two Agents, when delivering items with total retail value of up to $5,000. Two Agents would still be required to staff vehicles transporting products with a retail value exceeding $5,000 and up to the $10,000 delivery maximum. Under the change, Social Equity Program Participant and Certified Economic Empowerment Priority Applicant businesses with exclusive access to delivery licenses types also would be permitted to hold three Delivery Operator and three Delivery Courier licenses for the first time.

The draft changes also include a proposal to allow Microbusinesses to apply for other license types, such as Retail and Transport licenses; permitting Qualifying Medical Patients to opt-in to utilizing telehealth consultation with a Certifying Healthcare Provider for their initial certification; and giving Nurse Practitioners with independent practices authority to certify Qualifying Patients without a supervising Physician.

Any feedback to the draft regulations should be submitted to the Commission during the specified public comment period, and no later than October 7, 2024. All submissions should include the submitters’ full name, and organization or affiliation, if any. Those received by the deadline will be reviewed by the Commission and may be incorporated into the final version of regulations that will be considered at a forthcoming public meeting. Please be advised that the Commission may publish submissions it receives or produce them in response to a request made under the Massachusetts Public Records Law, M.G.L. c. 66, § 10, or any other compulsory legal processes.

A link to view the October 7 Public Hearing will be published at: https://masscannabiscontrol.com/calendar/. In advance of the public hearing, text of the proposed regulations may be viewed by visiting the “Regulations” section of the Commission’s public documents page at MassCannabisControl.com, requested by emailing [email protected], or by calling the Commission at (774) 415-0200.

 

Current Regulations

Please note: The Redlined versions include only those chapters with edits and changes in accordance with the Secretary of the Commonwealth’s filing requirements.



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