Grown Rogue Pushes East with Planned PharmaCann Acquisition

MEDFORD – Grown Rogue International Inc. announced it has taken the first steps toward the planned acquisition of PharmaCann Inc.’s New York license and assets, through the formation of Grown Rogue New York, LLC (GRNY) as a JV with a capital partner. The venture is structured as a 51/49 split and is supported by project-based financing commitments of up to $15 million.

The initial agreements include an exclusivity arrangement, along with consulting, lease, and funding contracts intended to prevent significant job losses and an operational shutdown of PharmaCann’s New York vertical operations during the interim period before the full transaction closes. Definitive purchase agreements are expected within four weeks, at a preliminary price of approximately $4.5 million.

PharmaCann’s New York holdings include the Hamptonburgh cultivation and manufacturing facility; approximately 24,000 sq. feet of indoor flower canopy, 16,000 sq. feet of light-deprivation greenhouse capacity, and substantial post-harvest and manufacturing infrastructure. The package also covers four Verilife dispensaries: two combining adult-use and medical sales in the Albany and Syracuse markets, and two medical-only locations in Buffalo and the Bronx. Those stores have averaged aggregate monthly sales of $1.7-$2 million over the past year and a half.

PharmaCann, once among the largest privately held cannabis operators in the country, defaulted on lease obligations across properties in New York, Ohio, and Pennsylvania, with a March 2026 settlement with landlord Innovative Industrial Properties (IIPR) mandating the turnover of those facilities by mid-2026. Hamptonburgh production had largely stalled by early 2026 before Grown Rogue stepped in.

The capital partner invested $10 million for a 49% preferred equity interest in GRNY, with Grown Rogue retaining a 51% controlling stake. An additional $5 million is accessible through a drawable term loan. During the interim period, GRNY is also extending a secured loan of up to $9 million directly to PharmaCann’s New York entity to fund operations, replenish retail inventory, and restart cultivation at Hamptonburgh.

Grown Rogue’s Chief Strategy Officer Josh Rosen cited New York’s potential supply gap [more than 700 licensed dispensaries and limited in-state indoor flower canopy] as central to the thesis, with the company projecting returns on incremental invested capital above 75%. Grown Rogue expects after-tax monthly operating cash flow from the New York assets to reach approximately $600,000 within 18 months. A full close requires regulatory approval from New York’s Office of Cannabis Management (OCM).

When larger operators exit distressed assets, smaller producers with tight cost discipline tend to pick them up at cents on the dollar. Grown Rogue’s entry price against infrastructure that IIPR once backed with $61 million is a clear measure of how far Cannabis asset values have compressed. Project-based financing protects the parent balance sheet – a prudent call given New York’s regulatory track record. The real challenge is at Hamptonburgh. Restarting cultivation after a prolonged slowdown, shifting the revenue mix toward adult-use, and maintaining retail continuity across four stores through an ownership transition. Grown Rogue’s operational history in Oregon and Michigan suggests the playbook is credible. New York has a reputation for thwarting even well-structured plans, and that remains the key variable here.