Copperstate Farms Management is expanding its footprint in Arizona through an agreement to acquire control of two licensed medical marijuana dispensaries in North Scottsdale and Tempe.
The dispensaries, Level Up, were formerly the property of Los Angeles-based MedMen Enterprises and branded as MedMen Arizona.
Financial terms weren’t disclosed for the deal, which includes a 25,000-square-foot cultivation and processing warehouse.
The transaction follows on the heels of Arizona voters legalizing a recreational marijuana market this week.
Existing medical marijuana operators such as Copperstate will be getting priority status in the state’s impending adult-use market.
MedMen agreed to pay $15 million for the two dispensaries in February 2019, but the financially struggling multistate operator put the assets up for sale in November 2019.
The dispensaries became mired in litigation earlier this year when MedMen allegedly still owed $12 million, plus interest, from the original deal.
With the Level Up acquisitions, vertically integrated Copperstate Farms now controls four retail operations.
“Copperstate Farms sees tremendous value in these locations, which will allow us to further expand our Sol Flower dispensary brand,” Copperstate Farms CEO Pankaj Talwar said in a news release.
Copperstate Farms is home to the one of the largest indoor cannabis facilities in the U.S. with 40 acres under glass and operates multiple product lines, including Good Things Coming edibles.
Arizona is one of the country’s largest medical marijuana markets, with sales projected to reach $770 million-$910 million a year.
Marijuana Business Daily projects that Arizona’s adult-use sales will total around $760 million a year by 2024.