MedMen stock hits $0.00

The downfall of the "Apple Store" of weed

Good morning. 

Here’s something. Yesterday, Theory Wellness celebrated a series of firsts, the company told Cultivated. They opened the first employee-owned cannabis dispensary which will include the world’s first beverage-only cannabis shop. (You can hear more about the beverage-only shop from Theory’s CMO from a Cultivated Live episode from Las Vegas.)

A 5-minute read from JB and JR

💡What’s the big deal?

It’s a sign of the times

MedMen Enterprises Inc. stock chart via Barron’s

Oh no: MedMen, the once-flashy cannabis retailer that the media called the ‘Apple Store’ of weed, is now essentially valueless.

The stock hit zero on January 19, and the last trade on January 4 when the stock was worth two cents, according to Green Market Report

Why it matters: MedMen’s stock chart tells the story of the last decade in cannabis, and oh, how the mighty have fallen. 

MedMen was valued at over $1.6 billion in 2018, in the early days of the cannabis boom when cannabis producers and retailers were going public and being interviewed daily on CNBC. 

Some industry prognosticators thought the company, with its slick dispensaries and larger-than-life founder and CEO Adam Bierman, would be the future of the cannabis industry and perhaps the next great success story of American capitalism.

But early investors mostly got screwed. 

What’s next: All cannabis companies should heed MedMen’s warning. Rightsize your expectations. And at the end of the day, cannabis is competitive and fragmented: Instead of world domination, focus on making a profit in your backyard first.

Read more: Our very own Cultivated Editor-in-Chief wrote a feature story interviewing Bierman after he had been pushed out of the company, and where it all went so wrong.

🥊 Quick hits

Stiizy, the California cannabis brand that’s facing allegations over illicit operations, is a defendant in six lawsuits, according to WeedWeek.

Cannabis and the Second Amendment

What happened: Florida governor (and former Republican presidential hopeful) Ron DeSantis said banning cannabis users from owning firearms is likely unconstitutional, as the conversation around cannabis and Second Amendment rights heats up.

“Yeah, I mean, I don’t think that’s constitutional, to be honest with you,” DeSantis said at a campaign stop in New Hampshire over the weekend, per Marijuana Moment

“If you’re using a legal product, I don’t see how that can nullify a constitutional right.”

Why it matters: The interplay of Second Amendment rights and cannabis use is just another weird casualty of the quasi-legal framework of pot in the US. 

Florida Republican Rep. Brian Mast introduced a bill last April, Gun Rights and Marijuana Act, which would allow medical and recreational cannabis users in legal states to purchase guns. 

While passing any sort of cannabis legislation in Congress has been Sisyphean to say the least, we’ll be watching this bill closely.

Read more: The New York Times outlines all the legal challenges around cannabis and gun ownership. Also read how DeSantis’ Attorney General is fighting a legalization measure in Florida.

🎒 What we’re reading

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