Adam Bierman, the flamboyant co-founder of once-high-flying cannabis retailer MedMen Enterprises, resigned as chief executive and surrendered his voting control.
The resignation, effective Feb. 1, comes at a time that the Los Angeles-based company has laid off hundreds of employees, sold noncore assets and has been beset by questions about its financial health.
In the most recent worrisome turn of events for shareholders and a sign of a possible cash crunch, MedMen asked vendors to consider taking equity payments.
In a news release Friday, MedMen said co-founder Andrew Modlin also has agreed to give up his voting rights.
“The biggest takeaway is they surrendered their super voting shares,” said Mike Regan, an equity analyst for Marijuana Business Daily’s Investor Intelligence.
Such super voting shares provide holders with larger than proportionate voting rights.
In this case, Regan noted, the shares enabled Bierman and Modlin to control the company.
Shareholders now will have a stronger say and, theoretically, the ability to change control of the company, Regan said.
The company’s board of directors appointed Ryan Lissack as interim CEO. He is the company’s chief operating officer and chief technology officer.
Jeff Smith can be reached at [email protected]