MedMen Enterprises (NASDAQOTH: MMNFF) has been one of the more controversial cannabis stocks out there. On the positive side, the company’s California stores generate huge sales, besting even Apple stores in sales per square foot. The company also recently lured Spike Jonze to make an ad for it. In addition, MedMen is aggressively ramping up production and opening dispensaries, started its own magazine called EMBER, and recently introduced its own private-label brand, Statemade.
On the other hand, the company is also massively unprofitable and is diluting shareholders as it aggressively expands across the U.S. This could theoretically lead to high upside but also carries a high amount of risk. However, it’s another troubling element that has me staying well clear of MedMen’s stock today.
MedMen CEO Adam Bierman speaks at a podium in front of a construction site next to a MedMen flag.
MedMen CEO Adam Bierman. Image source: MedMen.com.
Employees leaving — and suing
The trouble started last November, when ex-CFO James Parker “resigned” from MedMen after just a year on the job. Parker would later go on to file a lawsuit against MedMen, claiming he was essentially forced to resign because he wouldn’t do things he deemed unethical.
Parker’s allegations accuse CEO Adam Bierman
