Arizona’s booming medical cannabis market has caught the eye of yet another outside investor, this one from California. This month, Los Angeles cannabis company MedMen acquired Monarch Wellness Center dispensary in Scottsdale as well as its 20,000-square-foot cultivation center in Mesa.
MedMen has focused on markets in California, where it operates eight dispensaries between L.A. and San Diego; Nevada, where it’ll soon open its third dispensary; and New York, where it operates four dispensaries, according to CEO and co-founder Adam Bierman.
“We have a leading presence in those primary markets and we are now ready to expand our reach,” Bierman said in a prepared statement. He added that Arizona’s robust medical marijuana program and proximity to California and Nevada, where their brand is already strong, “makes this a great fit.”
MedMen will also acquire co-manufacturing agreements with Kiva Confections, a California-based “chocolatier” cannabis company; Arizona-based Huxton USA, which sells pre-rolls, bud, and vapes; and Mirth Provisions, which sells cannabis-infused beverages out of Washington.
Monarch has been a mainstay in Scottsdale since opening its doors in 2013 as the city’s first dispensary. Since then, it’s raked in more than $10 million in revenue. MedMen agreed to pay 80 percent of the price for Monarch in stock options and 20 percent in cash.
That price has yet to be disclosed. Chelsea Johnson, former Monarch owner, declined to comment on the details of the deal. Typically, such acquisitions don’t involve a sale of the state dispensary license, which is nontransferable, but rather a negotiated contract deal in which the new company controls the license and nonprofit boards.
“Our anticipation is that markets like Arizona … that have medical marijuana programs will actually legalize adult use, as the political momentum is building in this country,” said Daniel Yi, MedMen’s vice president of corporate communication. “We