MedMen Still Refusing To Close $73M Transaction With Ascend Wellness Regarding New York Properties

Ascend Wellness Holdings, Inc. AAWH AAWH confirmed Thursday that MedMen Enterprises Inc. MMEN MMNFF is still refusing to close the deal regarding New York properties.

What happened

The New York-based vertically integrated cannabis operator first revealed on Monday that MedMen has materially breached the previously announced definitive investment agreement between AWH, MedMen NY, Inc., MM Enterprises USA, LLC, and AWH New York, LLC. The news came just days after receiving final approval for Ascend's $73 million investment in MedMen's subsidiary in New York.

By refusing to close the transactions on the grounds that the required regulatory approval was not obtained, MedMen is essentially challenging the regulators' authority and ignoring rules set up by the state's medical program, Ascend noted.

On January 2, 2022, MedMen attempted to unilaterally terminate the investment agreement citing that the parties had not received approval from the applicable state regulators to satisfy the closing conditions. The following day, January 3, Ascend submitted notification to MedMen that their termination attempt was invalid and reiterated the statement on Thursday.

Ascend again calls on MedMen to honor its commitments made in the investment agreement and to close the transactions contemplated and provide continuity to the medical patients of New York. The company said that it remains committed to closing the deal and serving New York's medical marijuana patients and plans to work with the Office of Cannabis Management and the Cannabis Control Board of New York to increase access to patients.

Price Actions

Ascend Wellness’ shares traded 0.33% higher at $6.01 per share, while MedMen’s shares were up 2.35% at 17 cents per share at the time of writing Thursday morning.

Photo: Courtesy of Add Weed on Unsplash