MedMen's ends blockbuster deal adding to cannabis stock woes

Published Oct 10, 2019 10:13 a.m. ET
FILE - This Thursday, Dec. 21, 2017 file photo shows the MedMen marijuana dispensary in Los Angeles. Marijuana stocks have come down hard from their highs a year ago, and the skid isn't just spooking investors. On Tuesday, Oct. 8, 2019, MedMen Enterprises Inc., which sells legal cannabis in California and 11 other states, backed out of a blockbuster deal to buy PharmaCann, a Chicago-based marijuana company with operations in eight states. (AP Photo/Richard Vogel, File)

LOS ANGELES — Marijuana stocks have come down hard from their highs a year ago, and the skid isn’t just spooking investors.

On Tuesday, MedMen Enterprises Inc., which sells legal cannabis in California and 11 other states, backed out of a blockbuster deal to buy PharmaCann, a Chicago−based marijuana company with operations in eight states.

In its announcement, Los Angeles−based MedMen cited the steep pullback in U.S. and Canadian cannabis stocks this year, noting the Horizons Marijuana Life Sciences Index, a Canadian exchange−traded fund that tracks cannabis stocks, is down 47% since March.

Alex Veiga, The Associated Press

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