MedMen Enterprises, a marijuana cultivator and dispensary operator with locations across the United States, said in January that it will be selling its marijuana business holdings in Arizona after just one year of operating in the state because the company’s finances are in the red.
The company has decided to abandon growing marijuana and focus solely on selling it via their dispensaries, CNN reported.
“While vertical integration has been a big focus for the industry, our growing belief is that cannabis is evolving like every other consumer vertical: with a fragmented value chain and specialists at each layer,” said MedMen’s new interim CEO Ryan Lissack.
Along with outsourcing its cultivation, MedMen will place it’s dispensaries under a microscope to optimize their cash flow.
“We cannot continue to invest in assets that are not producing near-term cash returns,” said Zeeshan Hyder, MedMen’s CFO.
The fate of Medmen’s assets in Arizona are yet to be determined.
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