BOCA RATON, Fla.--(BUSINESS WIRE)--MedMen Enterprises Inc. (“MedMen” or the “Company”), a cannabis company with subsidiaries operating across the United States, today announced that it made an assignment into bankruptcy pursuant to Canada’s Bankruptcy and Insolvency Act (the “Bankruptcy Proceedings”) on April 24, 2024 and B. Riley Farber Inc. was appointed as the Company’s bankruptcy trustee (in such capacity, the “Bankruptcy Trustee”). The Company’s Chief Financial Officer, Amit Pandey, resigned effective as of February 13, 2024 and each of the Company’s directors resigned effective immediately prior to the commencement of the Bankruptcy Proceedings.
Also on April 23, 2024, the Company’s wholly owned subsidiary, MM CAN USA, Inc., a California corporation, was placed into receivership in the Los Angeles Superior Court, Santa Monica Division (“LASC”) to effectuate an orderly dissolution and liquidation of its California based assets. The Company’s current Chief Restructuring Officer formally resigned and is now appointed by LASC as the Receiver of MM CAN USA, Inc. It is contemplated that ancillary receivership proceedings will be sought in those U.S. states where MM CAN USA, Inc. controls or owns assets. As a result of such receivership proceedings, the operations and assets of MedMen’s subsidiaries will be dissolved or liquidated pursuant to applicable laws in the United States.
The difficult decision to shut down operations and commence the Bankruptcy Proceedings and Receivership Proceedings was made after careful consideration of the current financial condition of the Company and its subsidiaries, their inability to pay their liabilities as they become due and the anticipated enforcement actions of secured creditors. After careful consideration of these factors and in the absence of other available alternatives, the board of directors of the Company determined that it was in the best interests of the Company to proceed with the commencement of the Bankruptcy Proceedings and Receivership Proceedings.
Further information regarding the Bankruptcy Proceedings can be obtained from the Bankruptcy Trustee’s website at: https://brileyfarber.com/engagements/medmen-enterprises-inc/. Further information regarding the Receivership Proceedings can be obtained from the Receiver at LASCReceiver@mmecontractor.com. MedMen will remain non-compliant with applicable Canadian securities laws and regulations. MedMen’s trading on the Canadian Securities Exchange (CSE) has been suspended. It is anticipated that MedMen will ultimately be delisted.
ABOUT MEDMEN:
MedMen is an American cannabis company dedicated to improving life with Cannabis for All. With operating subsidiaries across the United States in California, Nevada, Illinois, Massachusetts, and New York, MedMen is known for its leading MedMen® and LuxLyte® brands offering cannabis in consumer-preferred product forms for medical and recreational use.
Forward Looking Statements:
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of Canadian securities laws (each referred to as "forward-looking statements"). Forward-looking statements include statements regarding intentions, beliefs, projections, outlook, analyses, or current expectations, including the expected outcome of the Bankruptcy Proceedings, the impact of same on the Company’s operating subsidiaries, the expectations that the Bankruptcy Trustee will pursue recognition of the Bankruptcy Proceedings under the United States Bankruptcy Code, the expected enforcement actions by secured creditors and the Company’s continued non-compliance with applicable Canadian securities laws. Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to MedMen, as applicable, or that MedMen, deems immaterial, could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements, and you should not rely on them as predictions of future events. The forward-looking statements included in this communication are made as of the date of this communication and MedMen does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
