Moves at several publicly-traded companies raise questions about the industry’s ability to weather the coronavirus.
- Beleaguered MSO MedMen pulled its earnings guidance and accessed additional financing. A Seeking Alpha commentator called the deal a “massive dilution” that could give investment firm Gotham Green Partners control of the company.
- MSO Acreage Holdings furloughed 122 employees and said it was temporarily closing wholesale operations and dispensaries in several states.
- MSO 4Front replaced its CEO. It has reduced corporate staff by 40% in the last four months. (WeedWeek recently interviewed 4Front President Kris Krane.)
- Ancillary conglomerate KushCo Holdings replaced its CFO on March 26. It has cut 50% of its staff since September. (WeedWeek recently interviewed KuchCo CEO Nick Kovacevich.)
- MedMen co-founder Andrew Modlin sold his West Hollywood home to YouTube star Emma Chamberlain for $3.9M. He had paid $3.895M in 2018.
- In his newsletter, Boston Globe reporter Daniel Adams wrote, “I’m confident this desperate plan to take a mediocre brand and slap it on an overvalued business in a completely different, highly-regulated, suddenly-screwed industry will turn out great.”
March was another bad month for pot stocks.
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- Green Entrepreneur serves up seven strategies for growing a business amidst the crisis.