Ascend Wellness Holdings, Inc. (OTCQX:AAWH) (CSE:AAWH) and MedMen NY, Inc., and MM Enterprises USA, LLC (OTCQX:MMNFF) recently signed a term sheet agreeing to settle their lawsuit in the Commercial Division of the Supreme Court of the State of New York in New York County. AWH was suing MedMen for refusing to close $73 million investment transaction, approved by State of New York.
At the time of the settlement AWH founder and CEO Abner Kurtin stated, “We are thrilled to put this dispute behind us and look forward to the imminent closing of this transaction. We continue to build scale in some of the most sought-after locations in premier, limited license markets in the country, and with this investment, we will bring our high-quality products and exceptional retail experiences to our seventh state. While we always seek accretive deals, this transaction is particularly attractive given a recent comparable acquisition valued at $247 million."
During AWH's latest earnings conference, Kurtin revealed that the company has decided to cancel the transaction.
“We have been engaged in negotiations with MedMen for 17 months and because of the state of MedMen’s assets, it is time for all of us to move on. Because we will not be moving forward with the MedMen transaction, we have $70 million of unencumbered cash at a time when cash is dear.”
“As many of you know, the regulatory environment in New York remains highly uncertain, given the unknown timing of the commencement of adult-use sales, unclear licensing process, and the lack of policing of the illicit market,” Kurtin continued. “As a result, the New York market is not a priority for AWH, but we will continue to monitor it closely,” reported Cannabis Business Times.
Ascend Montclair Launches Recreational Cannabis Sales
While AWH will not enter its seventh state, expanding business in New Jersey seems to be paying off as can be seen from the company's earnings report. Following that strategy the company has launched recreational cannabis sales at its Ascend Montclair, dispensary located at 395 Bloomfield Ave.
To ensure adequate access for both adult-use consumers and medical patients, consumers over 21 can now access a separate adult-use menu featuring a wide selection of products, including flower, edibles, vapes and more. To better streamline the shopping experience, Ascend Montclair customers will require an appointment to visit during the initial launch.
To accommodate heightened customer demand, medical patients can enjoy a special array of services, including a medical express lane, direct access to the front entrance, private consultation rooms, designated parking spots and dedicated shopping hours. Walk-in medical patients requiring time-sensitive services may also shop without an appointment.
"After an incredible adult-use launch in Rochelle Park, the Ascend New Jersey team is thrilled to bring that same energy and enthusiasm to Montclair," stated Frank Perullo, president and co-founder of AWH. "New Jersey is already showing signs of a booming adult-use market, and Ascend has proactively scaled our operations and staffing to serve our customers' specific needs in the state. We are grateful for the support of the Montclair community and cannot wait to share the Ascend experience with the people of Montclair and the surrounding towns."
Photo: Benzinga Edit; Sources: mohamed Hassan by Pixabay and Jeff W via Unsplash
