MedMen pens $33 million deal to expand its reach in Arizona cannabis market

Los Angeles-based MedMen inked a $33 million deal to acquire an Arizona-based vertically integrated marijuana firm.

The cash and stock deal will give MedMen a controlling interest in cannabis cultivator, producer and retailer Kannaboost Technology and CSI Solutions – referred to collectively as Level Up.

Here are the basics behind the deal:

• MedMen expands its Arizona footprint with two retail locations in Scottsdale and Tempe as well as 25,000 square feet of cultivation and production capacity in Tempe and Phoenix.
• The agreement, of which 51.5% will be paid in cash and 48.5% in MedMen shares, is expected to close in 90 days.
• Last month, the firm announced a deal to acquire Monarch – a vertically integrated medical marijuana business with operations in  Scottsdale and Mesa.
• In total, MedMen’s Arizona portfolio now includes three retail locations and a total of 65,000 square feet of cultivation and production capacity.

MedMen, which trades on the Canadian Securities Exchange as MMEN, has operations in California, Nevada and New York.

In June, MedMen announced it was snapping up assets in Florida.