MedMen starts bankruptcy proceedings in Canada; CFO, directors resign

By Sarah Lizee

Olympia, Wash., April 26 – MedMen Enterprises Inc. said it filed bankruptcy under Canada’s Bankruptcy and Insolvency Act on Wednesday, according to a press release.

B. Riley Farber Inc. was appointed as the company’s bankruptcy trustee.

The company’s chief financial officer, Amit Pandey, resigned effective as of Feb. 13, and each of the company’s directors resigned effective immediately prior to the start of the bankruptcy proceedings.

On Tuesday, 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, 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 the Los Angeles Superior Court as the receiver of MM CAN USA, Inc.

MedMen said ancillary receivership proceedings will be sought in the United States where MM CAN USA controls or owns assets.

As a result of the receivership proceedings, the operations and assets of MedMen’s subsidiaries will be dissolved or liquidated.

“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,” the company said in the release.

“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.”

MedMen’s trading on the Canadian Securities Exchange has been suspended. It is anticipated that MedMen will ultimately be delisted.

MedMen is a cannabis company based in Los Angeles.

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