Amid a growing dispute, a investment deal between two US cannabis companies appears to be in jeopardy.
Also this week, a maligned Canadian cannabis producer appears to be reaching the end of the line.
Keep reading to learn more about cannabis from the past five days.
Dispute between two cannabis companies
US$73 million investment agreement between Ascend Wellness Holdings (AWH) (CSE:AAWH.U,OTCQX:AAWH) and MedMen Enterprises (CSE:MMEN,OTCQX:MMNFF) appear to be in trouble as the latter seeks to exit.
The deal would have seen AWH invest in MedMen’s New York operations. Raising concerns about how the US dispensary operator went about breaking it, AWH told investors MedMen materially breached the agreement.
According to AWH, MedMen’s decision goes against the Office of Cannabis Management and the New York State Cannabis Control Board.
On the same day as the AWH announcement, MedMen issued its own statement saying he had terminated the agreement. A few days later, AWH released a new version continue to point to inappropriate conduct by MedMen.
“By refusing to enter into the transactions on the grounds that the required regulatory approval has not been obtained, MedMen is essentially challenging the authority of regulators and ignoring state medical program regulations,” AWH told shareholders.
Struggling producer potentially facing end of road
Canadian grower CannTrust Holdings, which has faced a rocky road since being charged with fraud over illegal cultivation operations, may be nearing the end of its run.
Last Thursday (January 6), the company issued an opinion in which he confirmed that he was in talks with stakeholders to find a “liquidation plan aimed at maximizing the value of his assets”.
The company informed the market that four of its directors have resigned, including Chairman Robert Marcovitch.
The company said that despite the progress it has made in regaining some semblance of a workstation, it has “faced challenges”. CannTrust said in a statement that these challenges mean the company does not have “sufficient cash to operate beyond the near term.”
The company’s former executive, including Peter Aceto, who was acting as CEO at the time the company was found guilty of its improper cannabis cultivation operations, was indicted last June.
Cannabis Business News
- Aurora Cannabis (NASDAQ: ACB, TSX: ACB)confirmed delivery C$10 million worth of medical cannabis products to Israel. “With strong local relationships, as well as the support of our patients and consumers, we look forward to continuing to grow our international business to complement our total cannabis portfolio,” said Aurora CEO Miguel Martin.
- TerrAscend (CSE:TER,OTCQX:TRSSF)announced the appointment of Ziad Ghanem as the company’s president and chief operating officer. “I am thrilled to join this team and help create value for TerrAscend’s patients, consumers and shareholders,” said Ghanem.
- Sundial producers (NASDAQ: SNDL) and Alcanna (TSX: CLIQ)posted an update on their proposed plan of arrangement. It includes an amendment for a revised review of the agreement.
- Clever Leaves Holdings (NASDAQ: CLVR)tell investors he will be presenting at the ICR 2022 conference, sharing information on his pharmaceutical grade cannabinoid activity.
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Securities Disclosure: I, Bryan McGovern, have no direct investment interests in any of the companies mentioned in this article.