MedMen Enterprises Inc. entered a definitive agreement to buy PharmaCann LLC, one of the largest medical cannabis providers in the U.S.

Under the agreement, MedMen will issue class B shares of New MedMen, a holding company formed for the purpose of the merger, to PharmaCann shareholders which will then end up owning about 25% of the new entity on a fully diluted basis.

The stock deal is valued at $682 million.

MedMen will also provide a loan to Oak Park, Ill.-based PharmaCann.

The New MedMen board will consist of 11 directors of which nine are expected to be from MedMen while the remaining two will be nominated by PharmaCann.

Los Angeles-based medical cannabis producer MedMen, which had announced its intentions to buy PharmaCann in October, said the combined company will operate 76 retail stores spread across 12 states.

The closing of the transaction is subject to customary regulatory approvals. The closing is also subject to the repayment of PharmaCann's debt and other customary closing conditions.

The boards of both companies have already approved the transaction.

Eight Capital provided a fairness opinion to MedMen's board, while Marquis Partners acted as financial adviser to PharmaCann.