Politico followed up with its earlier article about a possible bailout of Bloomfield Industries that we covered previously by breaking the news that the company has sold itself to MedMen, the California cannabis consultant that recently established an investment fund. Interestingly, financial backer Wicklow Capital is also an investor in PharmaCann, which holds one of the four other licenses in the state. New York rules prohibit license transfer, but the state approved the acquisition. MedMen will be required to maintain the Bloomfield name and stick to the original operating plan through July 31.
Bloomfield struggled more than its rivals as the highly restrictive nature of New York’s program limited the pool of potential patients. Recent moves to broaden qualifying conditions, including the addition of chronic pain should help the industry, but the state is in the process of adding five additional providers. The Politico article details some of the particular challenges that impacted Bloomfield Industries. No financial details were available, and Politico was unable to get comments from either Bloomfield Industries or MedMen.
Read Dan Goldberg’s “California firm acquiring Bloomfield Industries in medical marijuana shakeup”: http://www.politico.com/states/new-york/city-hall/story/2017/01/medmen-to-acquire-bloomfield-industries-in-medical-marijuana-shakeup-108593