MedMen Announces Delay of Filing of Financial Statements for the Year Ended July 1, 2023 and Issuance of Management Cease Trade Order

Rhea-AI Summary

MedMen Enterprises Inc. expects to be late in filing its financial statements and management’s discussion and analysis for the year ended July 1, 2023. The company identified errors in previous reports and will need additional time to complete the filing. The restatement of financial statements will also impact the condensed consolidated financial statements. MedMen has applied for a management cease trade order and will follow alternate information guidelines.

LOS ANGELES--(BUSINESS WIRE)-- MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF), a premier cannabis company with operations across the United States, today announced it expects to be late in filing its financial statements and management’s discussion and analysis for the year ended July 1, 2023 (the “2023 Financial Filings”) under applicable Canadian securities laws. The Company is unable to timely file, without unreasonable effort and expense, its Annual Report on Form 10-K for the fiscal year ended July 1, 2023 (the “Form 10-K”) because additional time is needed for the Company to compile and analyze supporting documentation in order to complete the Form 10-K. The Company intends to file the Form 10-K as soon as reasonably possible. The Company anticipates having the 2023 Financial Filings available for filing on or before November 29, 2023.

As previously reported in a Current report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on May 22, 2023 during the nine months ended March 25, 2023, the Company identified errors that resulted in misstatements of certain assets and liabilities as of June 25, 2022 as well as misstatements of certain income and expenses for the year ended June 25, 2022 included in the Company's Annual Report on Form 10-K for the fiscal year ended June 25, 2022, as filed with the SEC on September 9, 2022. The restatement of the Company's audited consolidated financial statements as of and for the year ended June 25, 2022, will also result in a restatement of the Company's condensed consolidated financial statements (unaudited) as of and for the three months ended September 24, 2022, and the three and six months ended December 24, 2022, which the Company intends to include in the Form 10-K.

MedMen applied for a management cease trade order (“MCTO”) under National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”), which was issued on November 1, 2023 by the British Columbia Securities Commission. The MCTO does not affect the ability of investors who are not insiders to trade in the securities of the Company. MedMen intends to follow the alternate information guidelines contained in National Policy 12-203 for so long as it has not filed the 2023 Financial Filings.

ABOUT MEDMEN:

MedMen (CSE: MMEN, OTCMKTS: MMNFF) is a premier American cannabis company dedicated to improving life with Cannabis for All. With operations across the United States in California, Nevada, Illinois, Arizona, Massachusetts, and New York, MedMen is known for its leading MedMen® and LuxLyte® brands offering cannabis in consumer-preferred product forms for medical and recreational use. MedMen produces and curates the best consumer product assortment for retail operations in its local communities, and drives consumer loyalty with service and engaging in-store experience, combined with reward, delivery, and e-commerce programs. For more information please visit www.medmen.com.

Forward Looking Statements:

Certain statements contained in this press release constitute "forward-looking statements" within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of Canadian securities laws (each referred to as "forward-looking statements"). Forward-looking statements include statements regarding intentions, beliefs, projections, outlook, analyses, or current expectations. Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to MedMen, as applicable, or that MedMen, deems immaterial, could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements, and you should not rely on them as predictions of future events. The forward-looking statements included in this communication are made as of the date of this communication and MedMen does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231102637220/en/

MEDIA CONTACT: La Nida Cedeno LaNida.Cedeno@medmen.com

INVESTOR CONTACT: investors@medmen.com

Source: MedMen Enterprises Inc.

FAQ

What is the reason for MedMen's delay in filing its financial statements?

MedMen identified errors in previous reports and needs additional time to compile and analyze supporting documentation for the filing.

When does MedMen expect to file the financial statements?

MedMen anticipates having the financial filings available for filing on or before November 29, 2023.

What impact will the restatement of financial statements have?

The restatement will affect the audited consolidated financial statements for the year ended June 25, 2022, as well as the condensed consolidated financial statements for the three months ended September 24, 2022, and the three and six months ended December 24, 2022.

What is a management cease trade order?

A management cease trade order (MCTO) is an order issued by a securities commission that restricts trading by company insiders until the required filings are completed.

Will the MCTO affect trading for non-insider investors?

No, the MCTO does not affect the ability of investors who are not insiders to trade in the securities of the company.