The multi-state dispensary company MedMen has recently lost its medical cannabis license to operate in the state of Virginia.
The Virginia Board of Pharmacy retracted their license to operate a medical cannabis dispensary after the company failed to complete milestones set out nearly a year ago.
This is after a $682 million merger between PharmaCann and MedMen was made and then later terminated back in 2019.
Following the merger’s termination, a lawsuit subsequently ensued and the company lost 95% of its value in a short period of time.
The drama ended with MedMen purchasing the license from PharmaCann to operate the potential facility in Staunton for a hefty sum of $10.
After the deal disintegrated, the Staunton facility was never actually developed as promised.
PharmaCann was initially granted a conditional license to operate a medical marijuana dispensary.
The provisional license was later rescinded by Virginia lawmakers after the Board of Pharmacy voted to deny the company’s request for an extension.
Regulators had given PharmaCann a limited timeline – 1 year – to construct their medical cannabis dispensary and hire a team of employees.
After an inspection in December of 2019 revealed that the company had failed to make the goals set out by the Board, the Virginia Board of Pharmacy then moved to rescind the provisional license.
In response to the Board’s decision, said Staunton Community and Economic Development Director Billy Vaughn, “As with the initial round of applications to the Board of Pharmacy, I hope Staunton is still a point of interest for other potential entities. Maybe the PharmaCann/MedMen site in Green Hills comes in to play.”
According to a recent Forbes article aptly titled “MedMen’s Failure is Everything Wrong with Legal Cannabis (And Is Only The First Company To Implode,” the new owners of MadMen have recently cut ties with the previous co-founders, Andrew Modlin and Adam Bierman.
Bierman recently stepped down from MedMen’s Board of Directors.
A news release by the company reads, “Adam Bierman, Co-Founder, stepped down as a member of the Company’s Board of Directors. In addition, Andrew Modlin, the Company’s other Co-Founder, stepped down as an observer to the Company’s Board of Directors. Mr. Modlin’s employment agreement with the Company expired on May 18, 2020.”
“MedMen also announced today that a settlement has been reached to resolve the litigation between MMMG-MC Inc. (BVI), Brent Cox, Omar Mangalji, et al. (“Claimants”) and various parties, including MedMen. Claimants originally filed suit in Los Angeles Superior Court on January 8, 2019 and subsequently moved the litigation into private arbitration. MedMen and other parties petitioned the Superior Court to compel arbitration on November 11, 2019. MedMen issued 1.5 million Class B Subordinate Voting Shares to MMMG-MC as a part of the overall 24 million share settlement with Claimants, which included contributions from other parties and allowed the issuance of shares to all MMMG shareholders. Although MedMen denies any wrongdoing, the Company believes its contribution to the settlement is in the best interest of its shareholders. The parties are in the process of dismissing the arbitration and court proceedings as a result of the settlement.
CannaWorld (@cannaworldsite) Tweeted, “Medical marijuana dispensary MedMen loses license in Virginia. Now Staunton could lose out entirely.”