MedMen Plunges After Scrapping PharmaCann Merger; Marijuana Stocks Slide

California-based marijuana retailer MedMen (OTC:MMNFF) on Tuesday said it would terminate its merger with PharmaCann and appointed a new CFO, killing off a deal that would have made it one of the biggest cannabis companies in the U.S. MedMen stock plummeted, while Canadian marijuana stocks reclaimed gains.

The announcement came a little less than a month after MedMen said the deal cleared a regulatory hurdle that moved the transaction closer to completion. The merger had been expected to close at the end of the year.

MedMen was not immediately available for comment. The company reports fourth-quarter results on Oct. 28.

MedMen also named Zeeshan Hyder as its new CFO, effective immediately, representing the latest turnover at the top, amid concerns about the company’s spending habits. The cannabis retailer said it terminated Michael Kramer, who had served at that post, on Monday.

Regulations Cited In MedMen-PharmaCann Termination

MedMen cited several reasons for the decision to scrap the $682 million all-stock deal for Chicago-based PharmaCann, announced last year.

For one, the company cited a slide in marijuana stocks broadly, as the industry struggles to live up to sales and profit expectations. PharmaCann shareholders would have received 186.4 million shares of the combined company.

MedMen added that PharmaCann’s cultivation and manufacturing business required “significant capital expenditures.” [Read More @ Investors.com]

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