GREY:MMNFQ - Post by User
Post by
ElkInvestorCAon Nov 29, 2019 12:09am
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Post# 30404544
Reasons for recent share price drop.. share unlock...
Reasons for recent share price drop.. share unlock...Many probably know this, but one of the main reasons for the incredible selling pressure the past few tortuous days has been the recent unlock of approx 12 million shares previously granted to early MedMen fundraisers. Particularily a few investors whom actually tried to SUE Medmen earlier to get access to these shares earlier.
These "investors" have flooded the ticket with selling pressure, at a perfect time to drag it down further. Good news is a few more sessions should wipe these guys out, and allow things to level out. Remember Illinos is coming online Jan 1, and that will increase revenue like crazy. Also Florida will be supplied and help Medmen to become EBITDA positive in no time. Check out Yahoo's Medmen forum for some real chat, that isnt just crazed shorters and pumpers.
https://smallcappower.com/analyst-articles/medmen-enterprises-cannabis-stock/ "Share lock-up agreements expiring. As shown in the chart below, MedMen Enterprises has approximately 312.5M shares held by MMMG, LLC (MM Can USA Inc.), a cannabis management company, and two private equity funds MedMen Opportunity Fund I, LP and MedMen Opportunity Fund II. Approximately 275M of these shares were subject to a lock-up agreement and not allowed to be sold until November 25, 2019. After which, 1/12 of the shares will be permissible to be sold at the end of each month, for the next 12 months. MedMen’s float is currently ~160M shares, which would increase MMEN’s float by 1.7x. Additionally, of the 275M shares 179M of them are held by MMMG. Two early investors in the MMMG filed a lawsuit with the Los Angeles Superior Court in January 2019, alleging they were being unfairly prevented from cashing out their interest in MedMen. The lawsuit was dismissed by the court. However, it is likely that the investors plan on cashing out their position once the shares begin to unlock. This would add ~15M shares per month to the MedMen Enterprises freely-trading float."