MedMen / Ascend dispute escalates
MSO Ascend Wellness Holdings claimed MSO MedMen had challenged the authority of New York regulators. The accusation comes after MedMen announced, earlier this week, that it would terminate a deal to be sell more than 86% of its New York business to Ascend for $73M.
- Ascend alleges MedMen is backing out of the deal on grounds that it was not cleared by New York state regulators. Ascend says state regulators approved the deal.
- In a letter filed with the Securities and Exchange Commission, Ascend CFO Dan Neville calls MedMen's position "absurd." (As far as I'm aware, MedMen hasn't publicly stated this position.)
- New York patients and communities "should not be pawns in your corporate machinations."
- MedMen has not made any public statements since Monday when it said it was ending the deal but did not give a reason.
- Since the investment announcement in February, New York legalized REC and created a highly anticipated market.
Separately, Ascend announced the close of a previously announced deal to buy two Chicago pot shops.