Easier said than done as we know that MedMen President Andrew Modlin sold his $3.9 million LA Mansion to an 18 year old You Tuber only recently.
Props to Christopher Ganan for living up to his word
As for Bierman, maybe his days of sailing to close to the wind are finally up
This Now Belongs To An 18 Year Old
Milestone Investments LP said in a complaint Monday that three executives agreed to put up their homes to backstop the loan, which was tendered last December to help MedMen stay afloat as it grappled with unpaid bills and a share price wallowing at more than 90% below its one-time high.
Alaska-based Milestone said it repeatedly asked MedMen’s sidelined co-founders, Adam Bierman and Andrew Modlin, and current Chief Strategy Officer Christopher Ganan to hand over the deeds of trust within 15 days of executing the loan. Only Ganan has complied, according to the complaint.
Milestone said it also loaned the trio $2 million to purchase more than 4.6 million MedMen shares on the condition that they would pay down the loan with any proceeds from selling the stock. Milestone said it believes the men have no intention of doing so.
Milestone said it sent the three men notices of default on March 26, but to no avail. It asked the court to order Bierman and Modlin to surrender the deeds and declare that all three must pay down the $2 million loan by selling the shares they purchased.
Bierman resigned as MedMen’s CEO in January, when the company acknowledged it would stop paying bills to vendors as it underwent a “restructuring.” The company said Bierman and Modlin had agreed to surrender their super voting shares, leaving them with nearly 5% stakes apiece.
The share price in the cannabis retailer, which operates stores in six states, has dropped roughly 90% over the past year. Last October, MedMen and medical cannabis company PharmaCann cancelled their planned $682 million all-stock merger, citing poor market conditions for cannabis as well as regulatory hurdles.
The January leadership shuffle came after several outlets published reports claiming the company was telling vendors it couldn’t pay what it owed.
Source: https://www.lacannabisnews.com/investor-demands-medmen-execs-homes-over-troubled-loan/
