Adam Bierman, the embattled CEO and co-founder of MedMen Enterprises, is stepping down from his duties starting February 1, Investors Business Daily reports. The company board has named Ryan Lissack, MedMen’s chief operating officer and chief technology officer, as interim CEO.
As part of his resignation, Bierman will also surrender his super-voting shares back to the company, helping to resolve a disputed ownership structure that had put power largely in the hands of Bierman and fellow co-founder Andrew Modlin, which had concerned shareholders. Modlin has also agreed to surrender his own super-voting shares — for now, however, Modlin’s shares have been turned over to executive chairman Ben Rose. Those shares will be officially turned over in December later this year.
“The Board supports both Adam’s decision to step aside for a new CEO to lead the Company, and his and Andrew’s decision to surrender their voting rights to give all shareholders a stronger voice. This evolution will provide Adam the space to contribute to the future of MedMen and extend his commitment to the industry that he has helped pioneer.” — MedMen Executive Chairman Ben Rose, in a press release
Concerns have circulated about the company’s finances and expansion plan since a planned merger with PharmaCann was called off towards the end of last year. Additionally, the firm downsized in November, cutting more than 190 jobs, while it was reported earlier this month that MedMen had started offering to pay vendors in company stock instead of cash. Last week, Bierman hosted an “Ask Me Anything” on Reddit and was beleaguered with difficult questions, many of which were either deflected or left unanswered.
MedMen’s stock value has continually suffered through the past months’ developments, but shares jumped 12% on the news of Bierman’s resignation, according to the report.
“I continue to believe that MedMen is positioned to thrive. It’s time for our next iteration of leadership to capitalize on the opportunity we have created,” Bierman said in a statement. “This has been an incredible journey and I will continue to be inspired by those around the globe working to make our world safer, healthier and happier through access to legal, regulated cannabis.”