MedMen Enterprises “materially breached” the terms of a deal in which Ascend Wellness Holdings would acquire most of MedMen’s New York marijuana operations, Ascend says.
Under the deal announced last February, worth at least $63 million, Ascend would acquire an 86.7% interest in MedMen’s New York cannabis business with an option to acquire the remainder after the launch of New York’s adult-use marijuana market.
New York-based Ascend announced Dec. 30 that the deal had received final regulatory approval and said it planned to close the transactions “imminently.”
In a Monday news release, however, Ascend said MedMen “has attempted to unilaterally terminate the investment agreement.”
In its own brief news release issued later Monday, California-based MedMen confirmed it was terminating the investment agreement but didn’t provide further details.
“MedMen had initially requested the New York State regulators approve the transaction in March 2021,” wrote Ascend in its Monday release.
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“The regulators have since complied with their request, but now MedMen is disputing the (New York) Office of Cannabis Management’s unambiguous regulatory approval, is refusing to close and is attempting to terminate the transaction.”
Ascend called on MedMen to go through with the deal and said it would “continue to pursue all measures to encourage MedMen to honor the investment agreement and close the transaction.”