In the latest move in the legal battle between the two cannabis companies, Ascend Wellness (CSE:AAWH) (OTCQX:AAWH) filed an amended complaint against MedMen (CSE:MMEN) (OTCQX:MMNFF) for backing out of their acquisition contract and a motion to dismiss MedMen’s counterclaims.
Documents filed Monday state Ascend’s position that MedMen has a case of “seller’s remorse” and is using “fabricated allegations” in the hopes of undermining their contract in order to pursue a more lucrative deal with a new buyer. This, says Ascend Wellness, despite its legal obligation to Ascend after the company “provided millions of dollars to MedMen at their time of need,” according to a press statement from the multi-state, vertically integrated cannabis operator.
Background: In February 2021, MedMen agreed to sell its New York operations, including one of only ten medical marijuana licenses available in New York State, to Ascend Wellness. Nearly one year later, despite approval by state regulators and the fact that MedMen had already received nearly $8.5 million in payments and a $73 million investment from Ascend, MedMen has refused to carry through on the deal.
As of Jan. 2022, MedMen attempted to unilaterally terminate the previously announced agreement between them.
Shortly thereafter, Ascend filed a suit in the Supreme Court of New York State seeking to enforce MedMen’s contractual obligation to which MedMen responded by filing “meritless counterclaims largely based on fictional events that never occurred,” according to Ascend.
Ascend's latest filings seek to dismiss those claims and correct the record.
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