CHICAGO--(BUSINESS WIRE)--PharmaCann LLC (“PharmaCann” or the “Company”), one of the largest private cannabis companies in the U.S., today announced the mutual agreement to terminate the Business Combination Agreement dated December 23, 2018, pursuant to which MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) (“MedMen”) was to acquire PharmaCann in an all-stock transaction.
As part of the agreement to terminate, and in exchange for satisfaction of amounts funded by MedMen to PharmaCann under a line of credit, the Company has agreed to pay a termination fee to MedMen through a transfer of the membership interests in entities holding the following assets:
- Cultivation and production facility in Hillcrest, Illinois
- Retail license in Evanston, Illinois
- Vertically-integrated license in Virginia
“Today we turn the page and begin a new future for our Company and our stakeholders. PharmaCann has consistently remained focused on execution and strengthening our already robust foundation for further growth, including completing the rollout of our Matter brand nationally as well as the re-branding of our dispensaries to Verilife. The PharmaCann leadership team has done an exceptional job balancing many demands this past year, and the Board is extremely confident in the team’s ability to continue to grow the business following the termination of the agreement to merge with MedMen,” said PharmaCann’s Executive Director, Greg Cappelli.
“I am extremely excited and confident about what the future holds for PharmaCann, our employees, our customers, and our shareholders. Over the past twelve months, PharmaCann has more than tripled its revenues through organic growth in Illinois, New York, and Massachusetts, as well as through recent store openings in Ohio and Pennsylvania. Additionally, we continue to make progress on the construction of our Ohio, Massachusetts, and Pennsylvania cultivation and processing sites, which are expected to become operational in 2020. Most importantly, our employees have remained united as an organization, which is a testament to our people and our culture. Our future has never been brighter,” said PharmaCann’s Chief Executive Officer, Brett Novey.
Pro Forma Footprint:
On a pro forma basis, PharmaCann is currently licensed for up to 26 retail locations and 5 cultivation and processing facilities across 6 states, with a focus on limited-license, vertically-integrated markets.
- Illinois: PharmaCann expects to become a prominent retailer in the Illinois recreational market with a total of eight retail store locations and one cultivation and processing facility (on a pro forma basis taking into account the asset transfers to MedMen as part of the termination agreement). The Company plans to have its four currently operating retail stores ready for recreational sales on January 1, 2020 and is preparing to open four more retail store locations for recreational sales in early 2020. In addition, PharmaCann has begun the process of more than doubling its cultivation facility capacity in preparation for increased demand beginning January 1, 2020 when the state officially launches recreational sales.
- New York: The Company is currently one of ten Registered Organizations in the state of New York and operates one cultivation and manufacturing facility and four retail stores across the state. With approximately 90,000 square feet of cultivation and manufacturing capacity currently operating, PharmaCann is a leading wholesale provider in the state with six of the remaining nine Registered Organizations currently purchasing product from the Company. With over 40 acres of land under control, as the market matures, the Company has the ability to expand its facility to over 10 times its current capacity.
- Massachusetts: The Company currently operates one retail store in Wareham, where it began selling recreational cannabis to customers in December 2018, and has two additional sites under control with plans to expedite the opening of these two additional recreational retail stores in Massachusetts in 2020. The Company’s 50,000 square foot permanent cultivation and processing facility in Holliston is expected to be completed in early 2020.
- Pennsylvania: PharmaCann won the ability to open a total of nine retail locations across the state through the competitive application process. The Company opened the first of its nine dispensaries in the Manayunk area of Philadelphia on October 4, 2019. PharmaCann is also building a 60,000 square foot cultivation and production facility after being awarded one of 25 cultivation and processing licenses in the state from among 300 applicants. The Company expects the facility to be operational in 2020.
- Ohio: The Company is currently licensed as a vertically-integrated operator in Ohio. In 2018, PharmaCann was awarded one of 15 large-class cultivation licenses in Ohio, and in 2019, was awarded a processing license. The dispensary license was awarded to the Company through a competitive application process that included 370 applicants competing for 60 licenses. Located in the heart of Columbia Township, PharmaCann’s retail location is the first dispensary to open in the Cincinnati area. The Company’s cultivation and processing facility, located in Buckeye Lake, is currently under construction with an expected completion date by the end of calendar year 2019.
- Maryland: The Company currently operates one retail store in Maryland, which is located in Rockville, and plans to expand its footprint in the state through acquisitions.
PharmaCann LLC is one of the largest private cannabis providers in the nation, with 13 dispensary locations and three production facilities currently operating across multiple states. PharmaCann offers pharmaceutical grade cannabis products to customers looking to improve the quality of their lives. For more information about PharmaCann, please visit www.pharmacann.com.
Forward Looking Statements:
This press release contains "forward-looking statements." Forward-looking statements can be identified by words like "may," "will," "likely," "should," "expect," "anticipate," "future," "plan," "believe," "intend," "goal," "seek," "estimate," "project," "continue," and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of the business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
The forward-looking statements included in this press release are made only as of the date of this release, and PharmaCann does not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.