MedMen Enterprises Inc., which operates cannabis companies throughout the U.S., has terminated a deal to acquire PharmaCann, LLC, who will pay termination fees to the firm via the transfer of three entity licenses in Illinois and Virginia.
Adam Bierman, MedMen co-founder and chief executive officer, said the termination of the deal is “in the best interest” of the company’s shareholders “to deepen, rather than widen, our Company’s reach.”
“Looking at the PharmaCann portfolio today, Illinois has emerged as the most attractive opportunity for our longer-term, strategic growth plan. The addition of those assets, without dilution, is a win for MedMen and our shareholders.” – Bierman, in a statement
PharmaCann still holds licenses for 26 retail stores and 5 cultivation and processing facilities in New York, Illinois, Massachusetts, Pennsylvania, Ohio, and Maryland.
In a press release, PharmaCann described the termination of the agreement as “mutual” and Executive Officer Brett Novey indicated that the company had tripled its revenues over the last year.
The deal was announced last year as the largest U.S. cannabis industry acquisition to date at $682 million in stock.
MedMen also announced that it had terminated Chief Financial Officer Michael Kramer and appointed Chief Corporate Development Officer Zeeshan Hyder to the role. The company credited Hyder with working with the CEO to take the firm public on The Canadian Securities Exchange and raising $500 million in capital for direct investment into the business. MedMen stock was down 13.54 percent at the end of trading yesterday following the announcements.
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