When MedMen Enterprises agreed to buy Chicago-based PharmaCann last year, the $682 million deal was one of the biggest in the history of the legal marijuana industry. Now, it’s one of the biggest to fall apart.
On Tuesday, the companies announced they were abandoning a transaction that already had been delayed by regulatory hurdles, but MedMen is not walking away empty-handed.
It’s still getting a piece of PharmaCann’s Illinois business — just in time to prepare for the Jan. 1 start of recreational marijuana sales in the state. In exchange for forgiveness of certain debt, MedMen is getting one of PharmaCann’s two growing facilities, a retail store, and a license to open another retail location.
That’s a win for MedMen, whose only presence in Illinois is a retail location in Oak Park.
Under the law legalizing recreational marijuana, only existing operators will be allowed to grow weed for recreational customers until late 2020 at the earliest. The law also allows existing operators to apply to open a second storefront.