BOCA RATON, Fla.--(BUSINESS WIRE)--MedMen Enterprises Inc. (“MedMen” or the “Company”), a cannabis company with subsidiaries operating across the United States, today announced that it made an assignment into bankruptcy pursuant to Canada’s Bankruptcy and Insolvency Act (the “Bankruptcy Proceedings”) on April 24, 2024 and B. Riley Farber Inc. was appointed as the Company’s bankruptcy trustee (in such capacity, the “Bankruptcy Trustee”). The Company’s Chief Financial Officer, Amit Pandey, resigned effective as of February 13, 2024 and each of the Company’s directors resigned effective immediately prior to the commencement of the Bankruptcy Proceedings.
Also on April 23, 2024, the Company’s wholly owned subsidiary, MM CAN USA, Inc., a California corporation, was placed into receivership in the Los Angeles Superior Court, Santa Monica Division (“LASC”) to effectuate an orderly dissolution and liquidation of its California based assets. The Company’s current Chief Restructuring Officer formally resigned and is now appointed by LASC as the Receiver of MM CAN USA, Inc. It is contemplated that ancillary receivership proceedings will be sought in those U.S. states where MM CAN USA, Inc. controls or owns assets. As a result of such receivership proceedings, the operations and assets of MedMen’s subsidiaries will be dissolved or liquidated pursuant to applicable laws in the United States.
The difficult decision to shut down operations and commence the Bankruptcy Proceedings and Receivership Proceedings was made after careful consideration of the current financial condition of the Company and its subsidiaries, their inability to pay their liabilities as they become due and the anticipated enforcement actions of secured creditors. After careful consideration of these factors and in the absence of other available alternatives, the board of directors of the Company determined that it was in the best interests of the Company to proceed with the commencement of the Bankruptcy Proceedings and Receivership Proceedings.
Further information regarding the Bankruptcy Proceedings can be obtained from the Bankruptcy Trustee’s website at: https://brileyfarber.com/engagements/medmen-enterprises-inc/. Further information regarding the Receivership Proceedings can be obtained from the Receiver at LASCReceiver@mmecontractor.com. MedMen will remain non-compliant with applicable Canadian securities laws and regulations. MedMen’s trading on the Canadian Securities Exchange (CSE) has been suspended. It is anticipated that MedMen will ultimately be delisted.