California-based MedMen Enterprises, a once-thriving multistate marijuana retailer, released a “grim” quarterly financial report that detailed a whopping $96.4 million net loss in its fiscal 2020 second quarter.

On a brighter note, the company, which has marijuana stores in five states, reported that its second-quarter revenues of $44.1 million rose 49.8% from $29.42 million a year earlier.

Still, Craig Behnke, an equity analyst at Marijuana Business Daily’s Investor Intelligence, described both the company’s quarterly results and its outlook as “grim.”

MedMen faces “an incredibly difficult task” because it needs “massive revenue growth” at a time it plans “deep structural spending cuts,” Behnke said.

Interim CEO Ryan Lissack said in a statement that MedMen plans to “continue to cut costs” while embarking on a “path to profitability.”

MedMen’s cost-cutting including a December announcement that it was laying off 20% of its corporate-level staff.

The company’s next chapter “will be defined by financial discipline and strategic growth,” Lissack said.

Lissack took the reins of MedMen on an interim basis after co-founder Adam Bierman resigned as CEO on Feb. 1. Bierman also gave up his voting control of the company.

The company trades on the Canadian Securities Exchange as MMEN and on the U.S. over-the-counter markets as MMNFF.

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