Ascend Wellness Claims MedMen Attempted To Terminate New York Investment Agreement

The start of the year does not bode well for Ascend Wellness Holdings, Inc. (CSE: AAWH.U). The multi-state cannabis operator claimed today that MedMen Enterprises Inc. (CSE: MMEN) has materially breached the definitive investment agreement signed in February 2021.

The agreement was set to see a $73 million investment into MedMen’s New York-based subsidiary–$35 million in cash and $28 million in senior secured promissory notes. In exchange, Ascend Wellness is expected to hold 86.7% equity in the New York subsidiary with an option to acquire the remaining interest in the future.

But MedMen is said to have attempted to unilaterally terminate the agreement. The US cannabis retailer is disputing the regulatory approval of the transaction made by the Office of Cannabis Management and is refusing to close the deal.

“AWH received notice that MedMen has attempted to unilaterally terminate the Investment Agreement despite receiving final approval from the state of New York and AWH waiving all of their closing conditions,” said the company statement. “This is a material violation of MedMen’s obligations under the Investment Agreement to close the transaction.”

Ascend Wellness said it will still be working with the New York state regulators “to increase access to patients as it grows the New York Medical Marijuana Program and launches the adult-use program” despite the failed transaction with MedMen.

The firm is calling on the US cannabis retailer to “honor its commitment” and plans to pursue measures to encourage pushing through with the agreement.

Ascend Wellness Holdings last traded at US$6.61 on the CSE.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Tudor Gold x American Creek: Consolidating A Massive Gold Project

Aura Minerals: The Era Dorada Underground PEA

Gold Is Now Smart Money’s End Game | Doug Casey

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Ascend Wellness Terminates CEO, CFO Over Performance Challenges

Ascend Wellness (CSE: AAWH-U) has terminated the employment of both its chief executive officer as...

Tuesday, August 27, 2024, 01:45:39 PM

Ascend Wellness Reaches Settlement With MedMen To Acquire New York Assets

It appears that attempting to void a sale agreement with Ascend Wellness Holdings (CSE: AAWH.u)...

Wednesday, May 11, 2022, 08:12:42 AM

Ascend Wellness Declares US$85.1 Million In Revenue, US$27.8 Million Net Loss

Ascend Wellness Holdings, Inc. (CSE: AAWH.U) reported on Wednesday its financial and operational results for...

Thursday, May 12, 2022, 02:59:00 PM

Ascend Wellness Adds Second Ohio Dispensary To Operations

Ascend Wellness (CSE: AAWH.u) appears to be expanding its presence in Ohio. The firm this...

Wednesday, December 22, 2021, 07:51:10 AM

Ascend Wellness Sees CEO Abner Kurtin Charged With Battery

The chief executive of Ascend Wellness (CSE: AAWH) appears to have gotten himself into a...

Wednesday, September 7, 2022, 08:24:52 AM