MedMen Enterprises Inc. has agreed to terminate a deal to acquire Chicago-based PharmaCann LLC in an all-stock transaction.
As part of the agreement to terminate, and in exchange for satisfaction of amounts funded by MedMen to PharmaCann under a line of credit, Culver City, California-based PharmaCann has agreed to pay a termination fee to MedMen through a transfer of the membership interests in entities holding the following assets:
- Cultivation and production facility in Hillcrest, Illinois
- Retail license in Evanston, Illinois
- Vertically-integrated license in Virginia
“Today we turn the page and begin a new future for our company and our stakeholders,” PharmaCann Executive Director Greg Cappelli said in a statement. “PharmaCann has consistently remained focused on execution and strengthening our already robust foundation for further growth, including completing the rollout of our Matter brand nationally as well as the re-branding of our dispensaries to Verilife. The PharmaCann leadership team has done an exceptional job balancing many demands this past year, and the Board is extremely confident in the team’s ability to continue to grow the business following the termination of the agreement to merge with MedMen.”
PharmaCann CEO Brett Novey added: “I am extremely excited and confident about what the future holds for PharmaCann, our employees, our customers, and our shareholders. Over the past twelve months, PharmaCann has more than tripled its revenues through organic growth in Illinois, New York, and Massachusetts, as well as through recent store openings in Ohio and Pennsylvania. Additionally, we continue to make progress on the construction of our Ohio, Massachusetts, and Pennsylvania cultivation and processing sites, which are expected to become operational in 2020. Most importantly, our employees have remained united as an organization, which is a testament to our people and our culture. Our future has never been brighter.”
