MedMen Application for License Rejected by Cali City

MedMen Enterprises, a multistate cannabis operator, has been rejected for a conditional-use permit that it needed to open a retail outlet in Pasadena, California. The reasons behind this rejection include material changes, including management upheaval-related instability.

While the fact that MedMen was denied a license is noteworthy, it’s a real blow demonstrating how canna-businesses with unstable management and ownership can be punished by regulators.

Local news outlet Pasadena Now published a letter by the city manager commenting on the company’s leadership. It cited “a material change in ownership and/or management in MedMen such that the evaluation and scoring of MedMen’s Application is no longer valid.”

The letter highlighted how nine out of 10 of MedMen’s owners listed on the company’s original application to Pasadena have changed since their application. This includes former MedMen CEO Adam Bierman and ex-President Andrew Modlin, both of whom left the company’s board in June following their resignation from leadership positions at the start of the year.

With this change of control, MedMen violated Pasadena’s rules. This ruling nearly immediately follows MedMen losing its medical cannabis dispensary license in Staunton, Virginia, in June.

While MedMen continues to trade on the Canadian Securities Exchange as MMEN and on U.S. over-the-counter markets as MMNFF, it’s curious how these problems will fare for their stockholders.

Even though this penalization against MedMen might seem unwarranted, the fact remains that we need more stable cannabis business operators in this emerging industry. These are the people who will contribute to the immense growth the industry is experiencing.

Do you think it’s fair that MedMen is being penalized for its unstable management and ownership practices? Why or why not?

Author:
Louis Levey is the Content Success Manager and Founder at No Strings Content. He's passionate about helping cannabis businesses use content to attract, educate, and convert audiences. His hometown is Boca Raton, Florida, but he currently lives and works remotely in Chiang Mai, Thailand.

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