MedMen terminates N.Y. deal with Ascend

MSO MedMen announced it was terminating an New York investment agreement with MSO Ascend Wellness Holdings. The news came after Ascend put out a statement accusing MedMen of breaking the deal.

In February, with MedMen strapped, the companies said Ascend would acquire 86.7% of MedMen’s New York operation for $63M.

• Ascend initially alleged MedMen “materially breached” the agreement. The statement goes on to say MedMen previously asked for and received, New York regulatory approval for the deal to go through then disputed the approval and refused to close the deal.
• The statement said: “As New York and other states adopt adult use of cannabis, MedMen’s actions send the worst message – namely, that certain cannabis companies cannot be trusted to keep their word.” 
• MedMen didn’t provide an explanation. Look out for a lawsuit.

Attorney David B. Feder posted “I thought this was an insane idea at the time (and also an insanely low price), considering the fact that literally billions of dollars of adult-use sales were right around the corner.”