World News: 11:00 GMT Wednesday 11th September 2019. [PharmaCann LLC via Businesswire via SPi World News]
PharmaCann LLC (“PharmaCann” or the “Company”), one of the largest private cannabis companies in the U.S., today announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR Act”), has expired with respect to the proposed acquisition by MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) (“MedMen”), a leading cannabis retailer with operations across the U.S.
“PharmaCann’s vision is to improve the quality of life for all through the production and responsible dispensing of cannabis-related products. We look forward to working towards closing the transaction with MedMen, and upon closing, we are excited to begin working hand-in-hand with the MedMen team, generating significant value for stakeholders and customers of both companies,” said PharmaCann Chief Executive Officer, Brett Novey.
Unaudited GAAP Financials:
For the calendar second quarter 2019, PharmaCann’s revenue totaled $17.5 million, up 184% over second quarter 2018. Year-over-year revenue growth was driven by the organic growth of the Company’s retail and wholesale operations in New York, Illinois, and Massachusetts, where it operates one of the highest performing dispensaries in the state. PharmCann’s second quarter revenue was generated from four of the seven states in which it holds licenses: New York, Illinois, Massachusetts and Maryland. In the third quarter, the Company expects to generate additional revenue from Pennsylvania, where it is licensed for up to nine retail locations, and Ohio.
As of June 30, 2019, total Company assets were $160.1 million, which included $14.0 million in cash and cash equivalents, $29.3 million in inventory and $81.4 million in property, plant and equipment.
Calendar Year 2018/2019 Revenue Summary:
(Currency in USD; $ in MM’s)
Wholesale Revenue 1
1 Q1 2019 wholesale revenue benefited from several new wholesale orders in New York as new registered organizations began to open retail locations in early 2019.
On December 24, 2018, MedMen announced that it entered into a definitive business combination agreement to acquire PharmaCann in an all-stock transaction. On March 15, 2019, pursuant to the HSR Act, PharmaCann and MedMen each received a request for additional information (the “Second Request”) from the U.S. Department of Justice Antitrust Division (the “Department of Justice”). On August 9, 2019, PharmaCann and MedMen declared substantial compliance with this Second Request. On September 9, 2019, the waiting period for the HSR Act, which was extended for 30 days after both companies substantially complied with the Second Request, expired. Following the satisfaction of this condition, PharmaCann anticipates being able to close the transaction with MedMen pending further state approvals, and subject to any divestiture, spin-off, or holdback for certain state licenses held by PharmaCann.
As consideration for the transaction, PharmaCann shareholders are expected to receive approximately 168.4 million subordinate voting shares in the combined company, based on MedMen's fully-diluted shares outstanding as of June 29, 2019. The total share consideration is subject to change based on MedMen’s fully-diluted shares outstanding as of the closing date of the transaction.
Please refer to the Company’s filings available on MedMen’s profile atfor additional details regarding the transaction.
PharmaCann is currently licensed for up to 29 retail locations and 7 cultivation and processing facilities across 7 states, with a focus on limited license vertically-integrated markets.
PharmaCann LLC is one of the largest medical cannabis providers in the nation, with eleven dispensary locations and three production facilities currently operating across multiple states. Focused on elevating the role of cannabinoid-based therapies in the healthcare industry, PharmaCann offers pharmaceutical grade cannabis products to patients looking for relief from qualifying medical conditions. For more information about PharmaCann, please visit.
MedMen is a cannabis retailer with operations across the U.S. and flagship stores in Los Angeles, Las Vegas and New York. MedMen’s mission is to provide an unparalleled experience that invites the world to discover the remarkable benefits of cannabis because a world where cannabis is legal and regulated is a safer, healthier and happier world. Learn more at.
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 risks and uncertainties which forward-looking statements are subject to include but are not limited to: the ability to obtain all requisite regulatory approvals and the satisfaction of all conditions to be met under the business combination agreement with MedMen.
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.
Business Wire: 11:00 GMT Wednesday 11th September 2019
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