MedMen Enterprises (CSE:MMEN; OTCQX:MMNFF) saw its net loss widen in the fiscal fourth quarter as its expenses mounted despite seeing robust sales at its California stores.
In the three months until the close of June, the Los Angeles-based cannabis company's net loss swelled to $78.7 million, compared with $7.35 million in the year-ago quarter. And for the year, its net losses climbed to $112.3 million from $15.4 million in fiscal 2017.
The picture wasn’t entirely gloomy, however.
The opening of additional retail stores and strong results in California drove MedMen’s revenues to $20.6 million, which was more than 13 times the $1.5 million the company saw in sales in the fourth quarter of fiscal 2017. Its revenue for the fiscal year came in at $39.8 million compared with $2.7 million for fiscal 2017.
At the close of June, MedMen’s total assets amounted to $282.2 million, including cash and cash equivalents of $79.2 million. The company was also sitting on debt of $56 million.
It added eight store locations throughout California, New York and Nevada during the year and now has a foothold in 12 states.
“2018 is a year of many milestones, including the pending PharmaCann acquisition; closed and pending expansions to Northern California, Illinois, Arizona and Florida; successes in accessing the capital markets; and the launch of our suite of [statemade] products and brand strategy,” said MedMen CEO Adam Bierman in a statement.
During the fourth quarter, the company invested $40.7 million of cash into its operations, $24.1 million into capital expenditures and $8.4 million into acquisitions. Its operating expenses for the fourth quarter came to $72.6 million.
MedMen has raised over $250 million in gross proceeds via the capital markets and financing activities since its reverse takeover last May.
This week, the cannabis company also received an upgrade and began trading on the OTCQX Best Market.
The company has been acquiring cannabis companies left and right and recently signed a letter of intent to acquire medical cannabis company PharmaCann in a US$682 million deal.
MedMen now operates a total of 14 retail stores in California, Nevada and New York as well as cultivation and production facilities.
Shares climbed 3.7% to $5.27 in Thursday’s afternoon trading session.
Contact Ellen Kelleher at [email protected]