MedMen Enterprises Inc (CNSX:MMEN) has confirmed that it has closed the acquisition process of Omaha Management Services, LLC’s Monarch Dispensary. Omaha Management Services, a subsidiary of WhiteStar Solutions LLC, operated the Monarch Dispensary which happened to be the first cannabis dispensary of its kind in Scottsdale, Arizona.
According to the terms of the agreement, MedMen will assume possession of Whitestar’s co-manufacturing and licensing agreement with “Kiva, Mirth Provisions and HUXTON for the state of Arizona.” The Monarch Dispensary which held a cannabis license issued by the state of Arizona and operated a cannabis cultivation and processing facility will be instrumental in introducing MedMen into the lucrative cannabis market. The acquisition deal was settled in 80% equity and 20% cash.
Adam Bierman, MedMen’s CEO and Co-Founder commenting about the finalized acquisition agreement said, “As we look to operationalize the acquisitions we have made in recent months, our team has focused on timely and seamless transitions.” The company’s boss boasted about the exemplary efforts his team put up to close the deal in record time and get the newly acquired business operational.
On December 3, the Monarch Dispensary began operations under the new management of MedMen. However, the dispensary will in the long run rebrand as a typical MedMen outlet. Although the state of Arizona has not legalized the use of recreational Marijuana, it remains the largest market for medicinal cannabis with an approximate patients’ number of 180,000. The state has the potential to be the country’s largest market for adult-use cannabis.
Legalization of Adult-use of marijuana
Cannabis operators in the state are crossing fingers that the ballot measure to legalize use of recreational marijuana returning in 2020-after it failed in 2016 – passes. Besides the newly operational Cannabis dispensary in Arizona, MedMen has a 20,000 square foot state-of-the-art cannabis cultivation and manufacturing facility in the state that supplies branded cannabis products to dispensaries across the state.