Today, MedMen Enterprises (MMEN) (MMNFF) closed the previously announced acquisitions of Kannaboost Technology and CSI Solutions, which are together referred to as “Level Up.” The company paid $33.5 million in a combination of cash and stock for the acquisitions.
The acquisition is expected to increase MedMen’s medical-use cannabis dispensaries in Arizona to three with the addition of retail locations in Scottsdale and Tempe. The flagship “Level Up” dispensary in Scottsdale has been ranked among the highest grossing dispensaries in the state. The acquisition also includes 25,000 square feet of cultivation and production capacity in Tempe and Phoenix and gives MedMen a 40% stake in K.I.N.D. Concentrates, which is currently sold in over 90% of the dispensaries in Arizona.
Today, MedMen was trading in the green. However, year-to-date, the company’s stock price has fallen 1.3% as of the February 12 closing price. During the same period, Acreage Holdings (ACRG-U) (ACRGF), iAnthus Capital Holdings (IAN) (ITHUF), and Curaleaf Holdings (CURA) (CURLF) have returned 7.5%, 34.6%, and 61.2%, respectively. The Horizons Marijuana Life Sciences Index ETF (HMMJ), which tracks the North American Medical Marijuana Index, has returned 40.8%.