09:40:48 EDT Tue 22 Sep 2020
Enter Symbol
or Name

Login ID:

Cannabis Summary for Oct. 29, 2019

2019-10-29 20:54 ET - Market Summary

This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

The Canadian Securities Exchange Composite Index dropped 6.85 points to 424.45 Tuesday. Medmen Enterprises Inc. (MMEN) sank 42 cents to $1.38 on 2.71 million shares following the release of its fiscal 2019 results after the market closed yesterday. The United States-based cannabis retailer recorded a colossal $277-million (U.S.) loss in the year. The company's losses are well-documented, but they are worth revisiting. Medmen lost $194-million (U.S.) in the first three quarters of its fiscal 2019. The company acknowledged long ago that its excessive spending was a problem. In February, 2019, Medmen warned, "At our current operating level, we will not have sufficient funds generated from operations to cover our short-term and long-term operational needs." Yet, in fiscal Q4, the company still posted an $82.9-million (U.S.) loss.

There are plenty of areas that Medmen should be able to cut back. A quick look into the company's general and administrative expenses reveals that Medmen spent $14.4-million (U.S.) on security and $7.7-million (U.S.) on travel and entertainment. The high times and excessive spending has contributed to the company's decline to $1.38 from its high of $9.88, which it touched last October.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS

© 2020 Canjex Publishing Ltd. All rights reserved.

Reader Comments - Comments are open to paying subscribers of Stockwatch and unmoderated, although libelous remarks, obscene language and impersonations may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.