MedMen Enterprises on Dec. 24 announced the cancellation of the remaining 815,295 class A super-voting shares held by co-founder Andrew Modlin effective Dec. 10, 2020. Shares closed 1% higher at the close on Thursday.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Simultaneously, the proxy granted by Modlin to MedMen Enterprises (MMNFF) co-founder and former CEO Benjamin Rose towards the voting of such shares also expired.
All the above came into effect under a purchase agreement on Jan. 30, 2020, when Rose decided to depart as the CEO and chairman effective Feb. 1, 2020.
The cannabis retailer now has only one class of outstanding shares, which are class B subordinate voting shares. (See MMNFF stock analysis on TipRanks)
On Dec. 12, Canaccord Genuity analyst Matt Bottomley reiterated a Sell rating on the stock, noting that MedMen’s road to profitability is still uncertain given its more than $500 million of lease liabilities, notes payable and convertible debt.
“The company continues to operate with a cash balance that is still razor thin compared to its potential capital needs with the prospect of future material dilution still a very real risk for the company,” Bottomley wrote in a note to investors. “We believe MMEN’s need for near-term financing points to continued material dilution given its current share price.”
From the rest of the Street, the stock scores an analyst consensus of a Moderate Sell based on 1 Hold and 1 Sell. With shares down 76% year-to-date, the average analyst price target of $0.12 implies downside potential of 8.5% to current levels.
Related News:
Thursday’s Market Snapshot: Here’s What You Need To Know Right Now
Caesars to Sell Southern Indiana Operation for $250M
Square Held Talks To Snap Up Jay-Z’s Tidal Streaming Service – Report
