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Cannabis Canada: How Two Failed Deals Highlight Ongoing Challenges In The Pot Space - Article

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MedMen shares drop after pulling out of PharmaCann deal

Shares of MedMen Enterprises plunged Tuesday after the Los Angeles-based cannabis company said that it will terminate an all-share deal for PharmaCann despite receiving antitrust approval less than a month ago. MedMen CEO Adam Bierman said in a statement that the decision to call the deal off was “based on the current macro environment and future opportunities that exist for our business.” MedMen was one of the first of several U.S. cannabis mergers that were under Department of Justice review to get the green light last month, which it announced with some fanfare. PharmaCann will transfer cannabis licences and related assets in Illinois and Virginia to MedMen as part of the deal’s termination fee.

Aleafia Health ends supply agreement with Aphria after claiming terms of deal not met

Aleafia Health announced Tuesday it will end a supply agreement with Aphria after claiming the Canadian pot giant failed to meet its obligations under the deal. In Sept. 2018, Aphria agreed to provide Emblem Corp. with up to 175,000 kilograms of high quality dried cannabis flower and crude cannabis oil at preferred wholesale pricing over a five-year period. In March, Aleafia acquired Emblem for $173 million in an all-stock deal. Aleafia said in a security document filed in August that it deposited $22.7 million with Aphria under terms relating to the cannabis supply agreement with Emblem.

Failed deals a sign that cannabis sector yet to turn the corner 

Source: https://www.bnnbloomberg.ca/cannabis-canada-how-two-failed-deals-highlight-ongoing-challenges-in-the-pot-space-1.1328493

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