Amid a growing dispute, an investment deal between two US cannabis companies seems to be in danger.
Also this week, a maligned Canadian cannabis producer appears to be nearing the end of the line.
Keep reading to find out more cannabis highlights from the past five days.
Dispute brewing between two cannabis companies
A US$73 million investment agreement between Ascend Wellness Holdings (AWH) (CSE:AAWH.U,OTCQX:AAWH) and MedMen Enterprises (CSE:MMEN,OTCQX:MMNFF) looks to be in trouble as the latter seeks to back out.
The deal would have seen AWH invest in MedMen’s New York operations. Raising concerns about the way the US dispensary operator went about breaking it off, AWH told investors MedMen materially breached the agreement.
According to AWH, the decision by MedMen goes against the Office of Cannabis Management and the Cannabis Control Board of the State of New York.
The same day as the AWH announcement, MedMen released its own statement saying it had terminated the agreement. A few days later, AWH issued a new release continuing to point to MedMen’s improper conduct.
“By refusing to close the transactions on the grounds that the required regulatory approval was not obtained, MedMen is essentially challenging the regulators’ authority and ignoring the regulations of the state’s medical program,” AWH told shareholders.
Troubled producer potentially facing end of the road
Canadian producer CannTrust Holdings, which has faced a turbulent road since being charged with fraud for illegal growing operations, may be nearing the end of its run.
This past Thursday (January 6), the company issued a notice in which it confirmed it is in discussions with stakeholders to find a “wind-down plan to maximize the value of its assets.”
The firm informed the market that four of its directors have resigned, including Chairman Robert Marcovitch.
The company indicated that, despite the progress it has made toward regaining a semblance of a working position, it has “faced challenges.” CannTrust said in a statement that these challenges mean the firm does not have “sufficient liquidity to operate beyond the near term.”
The former leadership of the company, including Peter Aceto, who acted as CEO at the time the firm was found guilty of its improper cannabis growing operations, was charged last June.
Cannabis company news
- Aurora Cannabis (NASDAQ:ACB,TSX:ACB) confirmed the delivery of C$10 million worth of medical cannabis products to Israel. “With strong local relationships, as well as support from our patients and consumers, we look forward to continuing to expand our international business to complement our total cannabis portfolio,” Aurora CEO Miguel Martin said.
- TerrAscend (CSE:TER,OTCQX:TRSSF) announced the appointment of Ziad Ghanem as president and chief operating officer of the company. “I am thrilled to join this team and help deliver value for TerrAscend’s patients, consumers, and shareholders,” Ghanem said.
- Sundial Growers (NASDAQ:SNDL) and Alcanna (TSX:CLIQ) issued an update on their proposed plan of arrangement. It includes an amendment for revised consideration of the deal.
- Clever Leaves Holdings (NASDAQ:CLVR) told investors it will be presenting at the 2022 ICR Conference, sharing insights on its pharmaceutical-grade cannabinoids business.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.