Nevada Judge Asked to Let New Wave of Retail Cannabis Shops Open
Marijuana Industry News August 20, 2019 MJ Shareholders
DENVER, Aug. 19, 2019 — PRESS RELEASE — Medicine Man Technologies, Inc. has announced the entry into a binding term sheet to acquire one of Colorado’s most well-known edible and extracts companies.
Upon completion, the acquisition will expand Medicine Man Technologies’ portfolio to now include one of the state’s largest manufacturers of a nationwide, reputable lifestyle brand that has an extensive line of cannabis-infused extracts, edibles and other wellness products. Terms of the transaction consist of shares of common stock and cash valued at approximately $17.25 million, or 1.25 times anticipated annual revenue of $13.8 million. The acquisition is expected to close by the first half of 2020. The terms can also be referenced in the 8-K, which outlines the closing conditions and are conditioned upon the satisfaction or mutual waiver of certain conditions, including regulatory approval.
“This agreement will bring the manufacturer of numerous award-winning cannabis edibles and extracts under our umbrella, with existing distribution in close to 600 Colorado-based dispensaries,” said Andy Williams, co-founder and chief executive officer of Medicine Man Technologies. “These manufacturers are the creators of branded products that are market segment leaders and have won numerous awards in a multitude of categories and will further establish our leadership in Colorado. Reaching critical economies of scale, while offering depth and breadth in all cannabis product segments, is incredibly important for our business model. This acquisition, along with the others currently pending, will undoubtedly get us closer to building a vertically integrated, leading operator in Colorado. We are excited about the numerous cross-selling opportunities. This transaction will allow our products to access the massive retail reach this cannabis manufacturer already enjoys. It is our laser-focus and commitment to becoming the region’s largest producer and supplier of cannabis and cannabis products. With each acquisition, we add key industry pioneers with a similar vision and vital experience that will ultimately prove compelling to our success.”
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