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by Stockwatch Business Reporter
The Canadian Securities Exchange Composite Index dropped 6.85 points to 424.45 Tuesday. Medmen Enterprises Inc. (MMEN) sank 42 cents to $1.38 on 2.71 million shares following the release of its fiscal 2019 results after the market closed yesterday. The United States-based cannabis retailer recorded a colossal $277-million (U.S.) loss in the year. The company's losses are well-documented, but they are worth revisiting. Medmen lost $194-million (U.S.) in the first three quarters of its fiscal 2019. The company acknowledged long ago that its excessive spending was a problem. In February, 2019, Medmen warned, "At our current operating level, we will not have sufficient funds generated from operations to cover our short-term and long-term operational needs." Yet, in fiscal Q4, the company still posted an $82.9-million (U.S.) loss.
There are plenty of areas that Medmen should be able to cut back. A quick look into the company's general and administrative expenses reveals that Medmen spent $14.4-million (U.S.) on security and $7.7-million (U.S.) on travel and entertainment. The high times and excessive spending has contributed to the company's decline to $1.38 from its high of $9.88, which it touched last October.
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