- Expiration of HSR waiting period moves the transaction one step closer to completion
- Combined company would be licensed for 92 retail stores, of which 38 are operational today, across 12 states
- Transaction is expected to be complete by end of calendar year 2019
LOS ANGELES–(BUSINESS WIRE)– MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) ("MedMen" or the "Company"), a leading cannabis retailer with operations across the U.S., today announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("HSR Act"), has expired with respect to the proposed acquisition of PharmaCann, LLC ("PharmaCann") (the "Transaction"). The expiration of the waiting period under the HSR Act satisfies one condition needed to close the Transaction, which is expected to be completed by the end of calendar year 2019, subject to customary closing conditions.
Today marks a monumental day for the cannabis industry. We hope this will pave the way for other companies in what has become a highly acquisitive and dynamic industry.Adam Bierman, MedMen co-founder and chief executive officer.
Bierman continued, "MedMen has built an enviable footprint which has cemented our brand in the largest cannabis markets in the world. Our transformative acquisition of PharmaCann will mold us into an even bigger and bolder company for our consumers. This acquisition doubles the number of states where MedMen has licenses, extending our geographic footprint and creating tremendous opportunity for our company and our shareholders. We are excited to be one step closer to closing the acquisition."
On December 24, 2018, MedMen announced the Company entered a definitive business combination agreement to acquire PharmaCann in an all-stock transaction. On March 15, 2019, pursuant to the HSR Act, MedMen and PharmaCann each received a request for additional information (a "Second Request") from the U.S. Department of Justice Antitrust Division (the "Department of Justice"). On August 9, 2019, both MedMen and PharmaCann declared substantial compliance with this Second Request. On September 9, 2019, the waiting period under the HSR Act, which extended automatically for 30 days following both companies declaring substantial compliance with the Second Request, expired.
As consideration for the Transaction, PharmaCann shareholders are expected to receive approximately 168.4 million shares in the combined Company, based on MedMen's fully-diluted shares outstanding as of June 29, 2019. The total share consideration is subject to change based on the Company's fully-diluted shares outstanding as of the closing date of the Transaction.
Disclaimer: Past performance is not an indicator of future performance.
MedMen is a cannabis retailer with operations across the U.S. and flagship stores in Los Angeles, Las Vegas and New York. MedMen's mission is to provide an unparalleled experience that invites the world to discover the remarkable benefits of cannabis because a world where cannabis is legal and regulated is a safer, healthier and happier world.
PharmaCann, LLC, one of the nation's largest medical cannabis providers, cultivates, processes and dispenses safe, independently tested cannabis products to improve people's lives. PharmaCann's dispensaries, called Verilife, and production facilities, called Veriplant, are operating in multiple states including Illinois, Maryland, Massachusetts and New York, with other locations in development including Michigan, Ohio, Pennsylvania and Virginia. By elevating cannabinoid-based products, PharmaCann empowers people with more options for feeling and living better.