MedMen Enterprises Inc. has signed a definitive agreement to acquire control of Level Up dispensaries in a cash and stock transaction valued at $33,000,000.
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, and as part of the transaction, MedMen will also receive a 40% stake in the brand K.I.N.D. Concentrates, which is currently distributed in over 90% of Arizona dispensaries.
“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.”
In Arizona, MedMen now controls three dispensaries, 65,000 square feet in total cultivation and production capacity, and distribution and co-manufacturing rights for several top brands, including K.I.N.D., Kiva, Mirth Provisions, and HUXTON. MedMen also has plans to introduce its line of branded products to the Arizona market over the next 12 to 18 months.
“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.
Inclusive of Level Up and other pending acquisitions, MedMen’s footprint includes licenses for 69 retail stores and 17 cultivation and production facilities across 12 states.