Cannabis retailer MedMen (Los Angeles) has announced that its acquisition of PharmaCann (Chicago) has fallen through, according to MJBizDaily. Instead, the company reports it will focus on strengthening its retail operations in California, Florida, Illinois, Massachusetts, Nevada and New York. MedMen’s chief financial officer, Michel Kramer, has been terminated and replaced with the company’s chief corporate development officer, Zeeshan Hyder.
The $682 all-stock transaction was announced nearly one year ago and recently MedMen had announced that both entities had met antitrust obligations and expected the deal to close by year end.
“We understand the need to pivot in a rapidly evolving industry, but this announcement comes as a surprise to us, particularly given the timing of the HSR expiry press release issued less than a month ago, which consisted of optimistic management commentary in regards to the deal’s prospects,” Vivien Azer, analyst at New York-based Cowen, wrote in a research note.