MedMen (OTCQX: MMNFF) is still refusing to close its agreed-upon deal with Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) for the properties in New York. The investment, which was agreed upon in March 2021, saw MedMen signing an agreement with Ascend Wellness Holdings, where Ascend would make an investment of approximately $73 million in MedMen NY Inc. or MMNY. Following the investment, Ascend would hold a controlling interest in MMNY of approximately 86.7% and will have an option to buy MedMen’s remaining interest in MMNY in the future. The deal was dependent upon New York State’s approval, which the Office of Cannabis Management of the Cannabis Control Board of the State of New York gave on December 16, 2021.
On January 2, 2022, Ascend said that MedMen attempted to terminate the Investment Agreement saying they hadn’t received approval from the applicable state regulators to satisfy the closing conditions. On January 3, 2022, AWH told MedMen that its termination attempt was invalid. On January 6, AWH reiterated this in their notice to MedMen regarding regulatory compliance.
MedMen’s only response so far has been to issue a press release saying it had terminated the deal. MedMen’s stock initially jumped on the news, but like other cannabis stocks has seen it share price erode during 2021. In November, MedMen appointed Michael Serruya as Chairman and Interim CEO. Serruya succeeded outgoing Chairman and CEO Tom Lynch, who held the position since 2020 and oversaw its operational turnaround. Serruya joined MedMen’s board in August 2021 as part of a $100 million investment in the company by Serruya Private Equity.