When MedMen Enterprises agreed to get Chicago-primarily based PharmaCann last year, the $682 million deal was a single of the most significant in the history of the legal marijuana market. Now, it is a single of the most significant to fall apart.
On Tuesday, the corporations announced they have been abandoning a transaction that currently had been delayed by regulatory hurdles, but MedMen is not walking away empty-handed.
It is nonetheless having a piece of PharmaCann’s Illinois enterprise — just in time to prepare for the Jan. 1 begin of recreational marijuana sales in the state. In exchange for forgiveness of specific debt, MedMen is having a single of PharmaCann’s two expanding facilities, a retail shop, and a license to open a further retail place.
That is a win for MedMen, whose only presence in Illinois is a retail place in Oak Park.
Below the law legalizing recreational marijuana, only current operators will be permitted to develop weed for recreational consumers till late 2020 at the earliest. The law also enables current operators to apply to open a second storefront.
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