Originally announced nearly a year ago, the planned acquisition of PharmaCann by MedMen Enterprises Inc. (CSE: MMEN; OTCQX: MMNFF) today entered a new phase with the official expiration of the HSR Act waiting period.
The all-stock deal was delayed in March when both MedMen and PharmaCann received second requests for additional information from the U.S. Department of Justice Antitrust Division.
Now that the waiting period has ended following compliance with those requests, the acquisition will be allowed to move forward.
PharmaCann currently operates in Illinois, Maryland, Massachusetts, and New York, while both dispensaries and production facilities are currently in the planning stages for Pennsylvania and Virginia.
Discussing the current state of the buyout deal, MedMen CEO Adam Bierman issued this statement about the expected impact on operations:
If remaining closing conditions are met, the acquisition is expected to be finalized by the end of December. Under current conditions, PharmaCann stockholders will receive slightly north of 168 million shares of MedMen after the deal closes.
MedMen’s stock hasn’t been spared from the continual decline in cannabis company prices since the spring, dropping from a high of $3.35 in late March and now trading at a price of $1.90 a share.
Aside from the long-simmering PharmaCann acquisition, MedMen also just closed on a deal to snap up MattnJeremy Inc, which operates under the name of One Love Beach Club. That deal included both $3 million in cash and an additional $10 million in company stock.
With One Love Beach Club now under the company banner, MedMen has gained another California location to take part in the recently launched statewide delivery service and MedMen Buds customer loyalty program.
The company’s continued operation and acquisitions have been funded in part through fundraising efforts with Gotham Green Partners, with MedMen landing an investment valued at $250 million through the capital group.
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