The co-founders of MedMen Enterprises Inc, Andrew Modlin and Adam Bierman, have stepped down from their roles on the company’s board of directors, the firm announced on Wednesday. The company indicated that Modlin’s employment agreement with MedMen expired last month and he had been serving as an observer to the board.
Bierman had stepped down from his duties as CEO on February 1 but no further details were offered regarding his departure from the board. Bierman’s decision to end his tenure as CEO came after reports that the company offered its vendors shares in the company in an attempt to reduce its overhead and conserve cash. Three months prior to his exit as CEO, MedMen called off its deal to acquire PharmaCann, in what Bierman described as “in the best interest” of the company’s shareholders.
Both Bierman and Modlin had surrendered their super-voting shares in January to the board and Executive Chairman Ben Rose, respectively, leaving them with just a 5 percent stake in the company.
Bierman had hosted a Reddit “AMA” the week prior to stepping down as CEO, where he was peppered with poignant questions, which he deflected and ultimately ended the session after about an hour and left many questions unaddressed.
Additionally, in April, Milestone Investments LLP, an early angel investor in MedMen, filed an official complaint against the co-founders and Chief Strategy Officer Christopher Ganan over unpaid loans to the company. The trio has reportedly used their Los Angeles, California mansions as collateral on a $10.2 million loan and Milestone sent notices of default in March and asking a court to force the men to surrender the deeds, sell off the shares they had purchased, and pay back the $2 million loan they used to acquire them.
In the July 17 announcement, MedMen also announced a settlement in a separate case between MMMG-MC Inc. (BVI), Brent Cox, Omar Mangalji, and others in which the firm issued 1.5 million Class B Subordinate Voting Shares to MMMG-MC as a part of the overall 24 million share settlement.
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