The City of Pasadena, California rejected a permit application by multi-state cannabis dispensary MedMen Enterprises, which would have allowed the company to sell recreational cannabis.
Officials cited changes in leadership at MedMen which they said violated city rules, according to a letter obtained by local newspaper Pasadena Now.
In the Aug. 27 letter, City Manager Steve Mermell wrote the company had “lost the right to proceed through the cannabis permitting process,” adding “MedMen’s Application is hereby rejected.”
Mermell also worried MedMen’s second largest shareholder, New York based private equity firm Gotham Green which currently holds 31.9 percent of voting power within the company, could “control management and the direction of MedMen.”
Nine of the 10 original owners listed on MedMen’s application have changed since beginning the process, including former CEO, Adam Bierman, Chief Operating Officer Ben Cook and MedMen President Andrew Modlin.
Both Bierman and Modlin, who resigned in January, remained on the board until June.
This is the latest unfortunate turn for Los Angeles based MedMen, which had an application for a medical cannabis dispensary license in Stuanton, Virginia rescinded in June.