Another Cannabis Company Cleared In City Investigation

Last week, city officials cleared another cannabis company in a probe that could result in one company losing its chance to sell cannabis in Pasadena.

Last Monday, Pasadena Now first reported that city officials found that an investigation revealed personnel changes in MME Retail, also known as MedMen, led to a change of control in the company that could result in the denial of a Cannabis Retail Permit and disqualification from the city’s process.

City officials informed the owner of Integral Dena LLC on July 8 that the company had been cleared in the probe.

“The purpose of this letter is to advise you that the city of Pasadena has cleared its review and the city manager finds that there has not been a change of control,” the July 8 letter signed by Assistant City Manager Nicholas Rodriguez states.

Integral plans to open its shop Essence in Pasadena, near the intersection of East Colorado Boulevard and Mentor Avenue, next door to the Hotel Constance.

Integral was sold last year to Green Thumb Industries. Almost a year later, Integral Chief Executive Armen Yemenidjian announced plans to step down.

A competing cannabis executive claimed that Integral should be removed claiming that like MME Retail, there has been material change in the company’s leadership.

In April, Integral Attorney Richard McDonald told Pasadena Now that Yemenidjian was still the top executive at Integral.

Clearing Integral effectively closes the probe as decisions have been made on all of the companies remaining in the city’s process.

Harvest Pasadena and Varda have also received word they were cleared. Harvest and Integral have received Conditional Use Permits.

Varda and MME Pasadena have not yet gone before the Planning Commission.

Two other companies that scored in the top six of the city’s process SweetFlower and Atrium did not advance.

The city requested all six applicants chosen to open retail stores submit materials for city review after it discovered at least seven officials at MME Retail, also known as MedMen, had left the company, which led to a change of control.

In the process, applicants were scored on the experience, cannabis industry knowledge, and ownership team criteria.

According to Marijuana Business Daily, in February the company reported $96.4 million in losses in the second fiscal quarter of 2020.

“It was made clear during the process that the evaluation and final interview was to be of the actual team to be working in Pasadena,” a letter to MME Retail states.

The probe began after Sweet Flower CEO Tim Dodd wrote a letter to the including allegations against MME Retail and Integral in April.

After receiving the letter, city officials canceled CUP hearings before the Planning Commission for MME Retail and Varda. The meetings have not been rescheduled.

So far, city officials would not reveal if another dispensary would be allowed into the process if MME Retail is removed from the process.

If MME is removed from the process, the company will have lost $14,000 in non-refundable application fees. According to a rental agreement, the company was also required to pay $250,000 to the master tenant at 536 S. Fair Oaks Ave. where the company planned to do business and $50,000 a month as of March 31 when the lease went into effect.

If all fees were paid, MME would lose more than $400,000 before ever selling any weed in Pasadena at a time when the company is already facing massive revenue issues.