MedMen Parts Ways With CRO On Heels Of Calling Quits On $73M Deal With Ascend Wellness

Cannabis retailer MedMen Enterprises Inc. MMEN MMNFF announced that Tracy McCourt, the company's chief revenue officer opted to resign, effective March 4.

"We appreciate Tracy's contributions to the organization these past 14 months and wish her well in her future endeavors," Michael Serruya, CEO and chairman of the Los Angeles-based company, said.

The latest management shake-up comes on the heels of MedMen refusing to close the previously announced transaction with Ascend Wellness Holdings, Inc. AAWH.

What Happened?

On December 30, almost a year after announcing its plans to invest $73 million in MedMen's New York subsidiary, AWH received approval from the state's Cannabis Control Board (CCB) and Office of Cannabis Management to move forward with the transaction.

Under the investment agreement, MedMen NY had agreed to undertake around $73 million of MedMen's current secured debt, while Ascend Wellness would make a $35 million cash investment in MedMen's subsidiary.

After MedMen refused to close the deal, AWH responded on January 2 with an accusation that MedMen was attempting to unilaterally terminate the transaction despite receiving final approval from the state of New York and AWH, waiving all closing conditions.

Ascend Wellness filed a lawsuit in the Commercial Division of New York's Supreme Court against MedMen NY, Inc. and MM Enterprises USA, LLC in mid-January, in which AWH is seeking an order compelling the specific performance of transactions that were contemplated by an investment agreement between AWH and MedMen.

Photo: Courtesy of Yibei Geng on Unsplash