MedMen will still acquire their assets in Illinois and Virginia for debt forgiveness
The weakness in pot stocks has scuttled MedMen Enterprises Inc.’s planned acquisition of PharmaCann LLC less than a month after it received antitrust approval.
The Los Angeles-based cannabis company said Tuesday that it will terminate the all-share deal, which was valued at $682 million when it was announced last October and MedMen was trading at about $4.45 a share. Cannabis shares have tumbled since then, with the Horizons Marijuana Life Sciences Index ETF down about 50% and MedMen’s stock down 65% to $1.52.
“The cannabis sector has evolved tremendously since we first announced the PharmaCann transaction and based on the current macro environment and future opportunities that exist for our business, we believe it is now in the best interest of our shareholders to deepen, rather than widen, our company’s reach,” MedMen Chief Executive Officer Adam Bierman said in a statement.
MedMen shares fell as much as 9.6% in early trading Tuesday.
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