Ascend Wellness Holdings, Inc. (CNSX:AAWH.U) cancelled the acquisition of an unknown majority stake in Medmen NY, Inc. from MedMen Enterprises Inc..
August 14, 2022
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Ascend Wellness Holdings, Inc. (CNSX:AAWH.U) entered into a definitive agreement to acquire an unknown majority stake in Medmen NY, Inc. from MedMen Enterprises Inc. (CNSX:MMEN) for $88 million on May 10, 2022. Upon closing, Ascend Wellness will receive a 99.99% controlling interest of MedMen NY. MedMen will be responsible for a $35 million break fee if the parties do not close within thirty days of the execution of the settlement agreement and amended Investment Agreement. MedMen NY and the Ascend will pay MedMen $74,000,000, which reflects the original transaction consideration plus an additional $11,000,000 per the partiesÆ term sheet. Ascend has already paid $4,000,000 as a deposit. Ascend will make a subsequent payment of $14,000,000 upon the first sale of recreational cannabis in a MedMen NY dispensary, which reflects the initial transaction earn-out of $10,000,000 plus an additional $4,000,000. As of May 18, 2022, Ascend Wellness closed $36.5 million of additional funding to support the acquisition. Other terms of the transaction will be as originally announced in February 2021. The transaction is expected to close within thirty days.
Ascend Wellness Holdings, Inc. (CNSX:AAWH.U) cancelled the acquisition of an unknown majority stake in Medmen NY, Inc. from MedMen Enterprises Inc. (CNSX:MMEN) on August 15, 2022. Under the terms of the settlement agreement, Ascend was to pay MedMen $88.0 million: $73.0 million as an assumption of MedMenÆs existing debt and $15.0 million in cash.
Ascend Wellness Holdings, Inc. is a vertically integrated multi-state cannabis operator. The Company is focused on operating in adult-use or near-term adult-use states in primarily limited license markets. It is engaged in cultivation, manufacturing, and distribution of cannabis consumer packaged goods, which are sold through Company-owned retail stores and to third-party licensed retail cannabis stores. The Company has licenses and assets in Illinois, Massachusetts, Maryland, Michigan, New Jersey, Ohio, and Pennsylvania. It produces and distributes its in-house Common Goods, Simply Herb, Ozone, Ozone Reserve, Royale, and Tunnel Vision branded products. The Company operates cultivation facilities in six states with approximately 245,000 square feet of total canopy. Common Goods is a no-frills brand that offers high value cannabis for everyday consumption. The brand comes in flower and pre-rolls. Ozone Reserve comes in exotic flower, refined concentrates, purified oils, and vapes.
ASCEND WELLNESS HOLDINGS, INC. 
