Ascend Wellness Holdings, Inc. (CSE:AAWH) (OTCQX:AAWH) has signed a term sheet to resolve its lawsuit against MedMen NY, Inc. and MM Enterprises USA, LLC (CSE:MMEN) (OTCQX:MMNFF) in the Commercial Division of the Supreme Court of the State of New York in New York County. Pursuant to the term sheet, MedMen has agreed to complete the sale of MedMen NY, Inc. to AWH, and upon closing, AWH will enter its seventh state.
To settle the dispute, AWH will increase the transaction consideration by $15 million, $4 million of which is contingent on the start of adult-use sales at a MedMen NY dispensary. The revised total consideration of $88 million remains significantly below recent precedent transactions. As part of the settlement, MedMen will withdraw its counterclaims against AWH. The parties will also amend certain terms in the previously announced transaction agreement.
