MedMen Enterprises Inc. (OTCQX: MMNFF) is acquiring Arizona-based Kannaboost Technology Inc. and CSI Solutions LLC, known as “Level Up,” in a cash and stock transaction valued at $33,000,000. According to the company statement, Level Up holds licenses for two vertically-integrated operations in Arizona, which include retail locations in Scottsdale and Tempe, as well as 25,000 square feet of cultivation and production capacity in Tempe and Phoenix.
“This acquisition strengthens our presence in one of the top cannabis markets in the U.S.,” said Adam Bierman, MedMen chief executive, and co-founder. “We will continue to identify highly accretive transactions in core states and remain laser focused on executing our retail playbook.”
Included in the deal is a 40% stake in K.I.N.D. Concentrates, which is currently distributed in over 90 percent of the dispensaries in Arizona. With this latest transaction and other acquisitions, MedMen will hold 69 licenses for retail locations and 17 cultivation and production facilities across 12 states.
MedMen will now control three retail locations, 65,000 square feet in total cultivation and production capacity, and distribution and co-manufacturing rights for several top brands in Arizona, including K.I.N.D., Kiva, Mirth Provisions, HUXTON, and Old Pal. In addition to these brands, MedMen will begin to introduce its products into the Arizona market as a result of this deal and that is expected to take place over the next year to year and a half.
“We have worked tremendously hard to build a company that puts the needs of patients in our local communities first,” said Michael Colburn, co-founder of Level Up. “This marks an exciting new chapter for our brands and for the medical marijuana patients who have supported us,” added Daryll DeSantis, Level Up co-founder.
The statement noted that Level Up is among the top medical marijuana operators in Arizona. The flagship location in Scottsdale is one of the highest-grossing dispensaries in the state and will be MedMen’s second dispensary in the city, pending the acquisition of Monarch, which was announced in September 2018. Level Up’s second location recently opened in Tempe.
K.I.N.D. Concentrates manufactures and distributes THC and CBD medical marijuana concentrates made from organic, indoor medical cannabis plants. The company was one of the first producers of medical marijuana concentrates in Arizona.