Culver City-based cannabis retailer MedMen Enterprises Inc. said it was cutting executive salaries as losses in its latest fiscal quarter continued to widen since it went public last year in Canada, according to a company statement.
MedMen reported losses of $63.1 million on revenue of $36.6 million in its 13-week third quarter that ended March 30, versus losses of $16.8 million on revenue of $14.3 million in the three months that ended March 31, 2018.
In its 39-week period ended March 30, the company saw losses of $194.1 million on revenue of $88 million, versus losses of $33.5 million on revenue of $19.2 million for a nine-month period ended March 31, 2018.
In the financial statement released May 29, the company said that Adam Bierman, MedMen co-founder and chief executive officer, and Andrew Modlin, MedMen’s president, had entered into revised employment agreements to lower their annual salaries to $50,000.
Total expenses with MedMen grew 243.2% to $72.9 million in the latest 13-week quarter from $21.3 million in the three months ended March 31, 2018. Overall, expenses grew 490.2% to $223.7 million over the 39-week period ended March 30 versus $37.9 million in the nine months ended March 31, 2018.
Since going public one year ago on the Canadian Securities Exchange, MedMen claims to have grabbed a 7% market share in California. It also is scheduled to open 15 new locations across the United States in 2019. Of the planned locations, a dozen will be in Florida where MedMen is licensed for up to 35 locations.
The retailer also has operations in New York, Illinois, Nevada and Arizona.
MedMen shares closed at $2.37 on Wednesday, up a penny.
Finance reporter Pat Maio can be reached at email@example.com or (323) 556-8329.
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