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MedMen Refuses To Close $73M Transaction With Ascend Wellness On Heels Of Regulatory Approval

MedMen Refuses To Close $73M Transaction With Ascend Wellness On Heels Of Regulatory Approval
Ascend Wellness Holdings, Inc. (CSE:AAWH) (OTCQX:AAWH) announced Monday that MedMen Enterprises Inc. (CSE:MMEN) (OTCQX:MMNFF) has materially breached the previously announced definitive investment agreement between AWH, MedMen NY, Inc., MM Enterprises USA, LLC, and AWH New York, LLC.

The move comes just days after receiving final approval for AWH's $73 million investment in MedMen's subsidiary in New York. On Thursday, the NY-based company was given green light from the New York Cannabis Control Board (CCB) and the Office of Cannabis Management of the CCB to follow through with the transaction.

The AWH parties, which previously waived all closing conditions in its favor following the receipt of required regulatory approvals, requested to close the transaction within the five-business-day period required under the terms of the investment agreement.

After repeated attempts to close the transaction, AWH received notice that MedMen was attempting to unilaterally terminate the transaction despite receiving final approval from the state of New York and AWH, waiving all closing conditions, the company revealed.

AWH called the move a material violation of MedMen's obligations under the investment agreement to close the transaction. MedMen requested that New York State regulators approve the transaction in March 2021. However, MedMen is now disputing the Office of Cannabis Management's unambiguous regulatory approval, refusing to close the transaction while looking to terminate it.
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