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Corey Goldman: Cannabis retailer Medmen is snuffing out his deal to buy marijuana producer and distributor PharmaCann in an all stock deal for $682 million that was announced about a year and change ago. Now it's an interesting divestiture, if you will, because frankly this company was all systems go in terms of merging with PharmaCann, even just a couple of months ago. So what changed? The answer, and it's not according to the company, but certainly according to a timeline, is that over the last couple of months it's received some additional funding from several private equity firms including Gotham GreenPartners. And speculation is that because of the investment, which is a couple of hundred million range, the idea that they would be merging with PharmaCann, especially in light of recent market activity in the pot space, there might've been a bit of pressure to end that arrangement. So no longer going to be merging the valuation for pot stocks in the company's own words. I have quote deflated this year with demand for cannabis related ventures that deflating. In addition to that, the CEO, Adam Bierman said, he believes that right now it's in the best interest of shareholders to deepen rather than widen the company's reach. So the acquisition for PharmaCann no longer on the table as well their CFO leaving the company, he will be replaced and more to come when the company announces its quarterly earnings on October 28th. For TheStreet.com, I'm Corey Goldman in Toronto.

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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