In a move to protect the safety of their employees, MedMen Enterprises Inc. (CSE:MMEN) (OTC:MMNFF) (FRA:0JS) temporarily shuttered many of its cannabis dispensaries after a handful of its California stores were destroyed and looted this past weekend. Despite this news, the share price of MMNFF has actually risen this week.
After confirming that the employees and security guards were all safe, the internal memo circulated by MedMen was also sure to “make it very clear there is a bright line between the peaceful protests yesterday and the criminal activity that followed.”
#Medmen Dispensary pic.twitter.com/azh79cdUyV
— ABRACADABS (@AbraCaDabsFest) May 31, 2020
Some video from @casey (via his IG) of the break-ins and destruction at @medmen over the weekend.#cannabiz pic.twitter.com/feWKzSp5yR
— Chris Furnari (@FurnRuns) June 2, 2020
#medmen pic.twitter.com/Bk0Uv99EYe
— inVerse, inc (@junbangu) May 31, 2020
While non-marijuana-related businesses may have a good chance at getting some coverage from insurance, even before this looting – insurance carriers were pretty cautious to participate in the cannabis industry.
Furthermore, the insurers that are in the market may not be offering high enough limits on coverage. “Insurers that are just entering the market offer basic policies that typically cover: commercial general liability, with limits of $1 million per occurrence/$2 million aggregate,” and “property liability and product liability, both with limits of $1 million per occurrence/$2 million aggregate,” according to the Insurance Journal.
Chances are, each dispensary had a lot more than $1-2 million in merchandise. MedMen aside, it should be noted that multiple cannabis-related businesses were targeted, including cultivation facilities and more.
We’ll continue to monitor the situation closely. Be sure to subscribe to cannabis stock updates here so you never miss an important update.
Get Real-Time Updates from MJobserver.com
