MedMen Announces Entering Bankruptcy Proceedings and Resignation of CFO and Directors
26 Abril 2024 - 4:23PM
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240426846714/en/
Richard Ormond rormond@mmecontractor.com 213.891.5217