MSOS Performance
New BoD & Management = No Deal
Many ask what has changed in the last month for Medmen to cancel the deal with AWH? Understandably, MMEN wants to keep a $200 Million asset and not sell it for $73M. It's clear that the new BoD and new management, back partially by TLRY, have had a change of heart. A is a big blow to AWH, but with Tilray and Serruya investing in Medmen the company doesn't need to sell its NY assets at a severe discount. Ascend Wellness announced MedMen Enterprises has materially breached the previously announced definitive investment agreement among AWH, MedMen NY, Inc., MM Enterprises USA, LLC, and AWH New York, LLC. The AWH Parties previously waived all closing conditions in favor of the AWH Parties, following the receipt of the required regulatory approvals, and requested to close the transactions contemplated by the Investment agreement within the five business day period required under the Investment Agreement. AWH has made repeated attempts to close the transaction. Subsequently, AWH received notice that MedMen has attempted to unilaterally terminate the Investment agreement despite receiving final approval from the state of New York and AWH waiving all of their closing conditions. This is a material violation of MedMen's obligations under the Investment agreement to close the transaction. AWH indicates MedMen is challenging and disregarding the determination of the Office of Cannabis Management and the Cannabis Control board of the State of New York, which approved the transaction. MedMen had initially requested the New York State regulators approved the transaction in March 2021. The regulators have since complied with their request. Still, now MedMen is disputing the Office of Cannabis Management's explicit regulatory approval, is refusing to close, and is attempting to terminate the transaction. AWH remains committed to closing and serving the New York Medical Marijuana Program patients. AWH intends to work with the Office of Cannabis Management and the Cannabis Control board of the State of New York to increase patient access as it grows the New York Medical Marijuana Program and launches the adult-use program. AWH will continue to pursue all measures to encourage MedMen to honor the Investment agreement and close the transaction.
Aurora Cannabis is trying to stay relevant.
ACB put out a press release saying its has shipment worth approximately C$10 million to Israel, the company's largest-ever shipment to Israel, and "what is believed to be the largest export of medical Cannabis into the Israeli market." Delivered in December, the shipment will be recognized as revenue in Aurora's FY22 Q2 period. The PR goes on to say, "As the leading Canadian licensed producer (LP) in global medical cannabis by revenue, Aurora has strategically focused on international expansion to bolster its diversified business portfolio." The bottom line better-capitalized companies are going after the market in Israel, and ACB will not be a long-term winner in that market.
