The closing price of MedMen Enterprises Inc (OTCQX: MMNFF) rose 4.98% to $0.2995 yesterday. Volume of MMNFF stock was 2.73M compared to its average weekly volume of 2.38M. MMNFF stock gained some traction after the quarterly results were released.
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How did MMNFF do this quarter?
As a cannabis retailer with a presence in California, Nevada, Arizona, Illinois, and Florida, MedMen specializes in retailing medicinal cannabis. Through its premium retail stores, proprietary delivery service, curbside and in-store pickup, as well as its MedMen-owned brands, MMNFF offers a robust selection of high-quality products. The MedMen Buds loyalty program of MMNFF offers members access to promotion, product drops, and content only available to members. MNNFF believes that a regulated and legalized cannabis world would be safer, healthier, and happier.
In an earnings release yesterday, MedMen Enterprises disclosed its consolidated financial results for the fourth quarter of 2021 ended June 26, 2021.
Quarterly financial highlights:
- With Arizona operational for the first time in over 25 years, MMNFF’s net revenue for the fourth quarter increased 18.5% sequentially and 55.4% year-over-year, reflecting the rising profitability of the company’s continuing operations in Arizona.
- A higher gross margin at MMNFF’s cultivation and manufacturing operations drove the fourth quarter’s company-wide Gross Margin Rate to 46.9%, up from 40.5% in the previous quarter. The fourth-quarter gross margin rate for retail was 54.9%, down from 55.6% the previous quarter.
- MMNFF’s fourth quarter general and administrative expenses were $33.5 million, down 13.7%.
- In the fourth quarter, MMNFF’s Corporate SG&A increased by 9.7%, excluding store pre-opening costs of $12.1 million. The $12.1 million represents a decline of 19.1% from the year-ago period.
- MMNFF had a net loss of $46.2 million, compared to a net loss of $9.7 million in the prior quarter, which included a tax provision benefit of $32.7 million.
- MMNFF’s fourth quarter retail adjusted EBITDA margin was 22.0%.
Equity and Finances:
Through a private placement with an institutional investor, MMNFF raised $10.0 million in additional gross proceeds during the fourth quarter. At the end of the quarter, MMNFF announced that investors, led by Serruya Private Equity, bought $100 million of units. There were 416,666,640 Class B Subordinate Voting Shares of MedMen in the transaction, as well as five-year warrants exercisable at $0.288 per share to purchase 104,166,660 Shares.
MedMen (MMNFF) will be able to use proceeds from the private placement to expand its business operations in key markets such as California, Florida, Illinois, Arizona, and Massachusetts. It will also be able to identify and accelerate further growth opportunities across the country.