MedMen’s stock price
On February 10, New York Daily News reported that the NYMCIA (New York Medical Cannabis Industry Association), which is working to legalize recreational cannabis sales in Albany, asked MedMen Enterprises (MMEN) (MMNFF) to resign due to allegations of financial irregularities and racist and sexist remarks.
James Parker, MedMen’s former CFO, filed a lawsuit on January 29 in the Los Angeles Supreme Court. He alleged that MedMen’s CEO Adam Bierman committed financial irregularities for personal gains at the cost of shareholders. The lawsuit also alleged that Bierman used a racial slur against a Los Angeles city councilman.
The NYMCIA’s board chair and president stated that if MedMen refuses to resign, it will be expelled from the association.
The NYMCIA’s announcement about slashing its association with MedMen caused MedMen’s stock price to fall more than 6% on February 11. The company’s stock price has fallen 2.6% year-to-date as of the closing price on February 11.
During the same period, Acreage Holdings (ACRG-U) (ACRGF), iAnthus Capital Holdings (IAN) (ITHUF), and Curaleaf Holdings (CURA) (CURLF) have returned 9.1%, 32.4%, and 60.7%, respectively. The Horizons Marijuana Life Sciences Index ETF (HMMJ), which tracks the North American Medical Marijuana Index, has returned 37.6%.