MedMen Enterprises Inc. today announced that it has signed a definitive agreement with WhiteStar Solutions LLC to acquire control of Monarch, a Scottsdale, Arizona-based licensed medical cannabis license holder with dispensary, cultivation and processing operations through the acquisition of Omaha Management Services, LLC. In addition, MedMen will acquire from WhiteStar their exclusive co-manufacturing and licensing agreements with Kiva, Mirth Provisions and HUXTON for the state of Arizona.

“Our strategy has been to establish our brand in the primary markets of California, Nevada and New York,” said Adam Bierman, MedMen chief executive and co-founder. “We have a leading presence in those primary markets and we are now ready to expand our reach. Arizona, with its robust medical marijuana program and connectivity to California and Nevada where our brand is already strong, makes this a great fit.”

Arizona is one the largest medical marijuana markets in the country with over 172,000 current patients. The state also represents one of the larger addressable adult-use markets in the U.S. A ballot measure to legalize adult-use narrowly missed in 2016, and is expected to return in 2020.

Founded in 2013, Monarch is among the top medical marijuana dispensaries in the country, known for exceptional patient service, commitment to cannabis product education and innovative operational concepts. Monarch is the first cannabis dispensary to break ground in Scottsdale with impressive product offerings in its portfolio and a run rate revenue of over US$10 million.

In addition to the medical marijuana dispensary, Monarch is licensed to operate a 20,000-square-foot cultivation and manufacturing facility in Mesa, Arizona. As one of the top wholesalers in the Arizona market, Monarch distributes branded products to over 60 dispensaries in the state.

As consideration for the acquisition, the Company will pay approximately 80 percent in stock and 20 percent in cash. The stock consideration will be satisfied by way of issuance of shares of MedMen Enterprises, Inc.

The transaction is expected to close within 90 days and is subject to customary closing conditions.