Ten months from its original announcement, MedMen Enterprises Inc. (CSE: MMEN; OTCQX: MMNFF) has now officially axed the company’s planned acquisition of PharmaCann. That all-stock deal would have seen MedMen snapping up PharmaCann for 168.4 million shares.
Citing regulatory delays and major changes to the licensed cannabis market over the last year that has seen stock prices plummeting across the board, MedMen cancelled the deal today in favour of focusing on home state expansion instead.
That now-defunct deal was still officially on as recently as late September, when the waiting period had ended following a request for additional information on the acquisition from the U.S. Department of Justice Antitrust Division.
Despite the cancellation, MedMen will still walk away with additional multi-state assets.
As part of the deal termination fee and in exchange for debt forgiveness, PharmaCann will transfer Illinois licenses to MedMen for retail sites in Chicago and Evanston, a cultivation site in Hillcrest, and finally a facility in Virginia.
Chief Executive Officer Adam Bierman issued this statement about the rationale behind terminating the deal this morning:
Like nearly every major company in the North American cannabis sector, MedMen’s stock has fallen significantly in the last year, dropping from $6.94 a share in mid-October of last year to a current price of $1.52 as of Tuesday morning.
In other MedMen news, the company recently teamed up with Netflix to promote the new Breaking Bad movie El Camino.
Actor Matt Jones, who plays the character Badger from the original Breaking Bad series, appeared at a MedMen dispensary in Los Angeles on Sunday to sign posters and help promote the upcoming film release. Jones is also known for a variety of animated voice acting roles, including the character of Kyle from the 2015 movie Home, and he will play the iconic role of Wedge in the upcoming Final Fantasy VII video game remake.