MedMen stock is up five% on Friday immediately after MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) announced the opening of two new places in Florida, bringing its retail presence in the Sunshine State to seven.
MedMen Betting Massive on Florida Market place
MedMen Enterprises, which operates 32 places across the US, is continuing its expansion into the Florida industry with the opening of a shop in Tallahassee and an additional in the common vacation location of Orlando. Florida is the third-biggest state in the US, and though recreational marijuana is nevertheless illegal, there is a robust medicinal cannabis industry for MedMen to target, with more than 260,000 certified sufferers. MedMen stock is presently trading at $1.69 following the announcement.
MedMen Buds, the company’s new loyalty system will be out there to all sufferers at these places. In addition, MedMen’s completely owned and operated, identical-day delivery platform, which presently solutions California and Nevada, will be out there to Florida sufferers quickly.
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MedMen Shares Down 80% This Year
MedMen stock has dropped more than 80% in the final year immediately after a series of setbacks sent it into a downward spiral. The difficulties date back to April when a scandal in head workplace led to an executive-level reshuffle that saw the departure of the CFO, COO, and Common Counsel. In a lawsuit, the former CFO alleged that the operate atmosphere at MedMen Enterprises was rife with homophobia, racism, and misogyny from the extremely prime.
MedMen has created moves to place that dismal chapter behind it nonetheless, quarterly losses of about $60 million USD meant MedMen stock in no way really had the likelihood to recover. Coupled with substantial unprofitability, the organization is diluting shareholders in order to fund an aggressive storefront expansion. Although this technique might bear fruit down the line, and is displaying indicators of performing so these days, investors are nevertheless clearly apprehensive of MedMen.
Final month’s parody of the organization on Comedy Central’s South Park, in which MedMen was portrayed as “posers” searching for to ban homegrown cannabis in order to preserve its personal earnings, is a clear indication of the public perception of MedMen Enterprises. The organization has charged head-on into a nevertheless youthful business and has currently been rocked by scandal and lack of profitability out the gate. This tends to make for grim reading for investors. What do you assume of MedMen stock?
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