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.