Cannabis license owner and retailer MedMen Enterprises (MMNFF) is snuffing out its planned $682 million all-stock deal to buy marijuana producer and distributor PharmaCann, and also replacing its chief financial officer -- less than three months after receiving a second round of capital from private-equity firm Gotham Green Partners.
With valuations for pot stocks deflating this year and with demand for cannabis-related ventures deflating, "... MedMen and its board have determined that focusing on leveraging the company's retail brand, its leadership position in California, and its digital platform to grow the business will create greater shareholder value than the completion of the transaction," MedMen said in a statement.
"The cannabis sector has evolved tremendously since we first announced the PharmaCann transaction and based on the current macro-environment and future opportunities that exist for our business, we believe it is now in the best interest of our shareholders to deepen, rather than widen, our company's reach," MedMen CEO Adam Bierman said.
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