Medicine Man Technologies Continues To Add To Portfolio, Spends $100M in Two Weeks

Medicine Man Technologies, Inc. (OTCQX: MDCL) has been on a dispensary buying binge this past couple of weeks. Today the company has added to that list of newly acquired properties. The company said it would be buying four additional dispensaries in Colorado from a leading cannabis retailer. The company’s total dispensary count will grow to 27 upon the successful closing of all the pending acquisitions.

Medicine Man Technologies will spend $50,096,413 for the four dispensaries, which will be a combination of $25,048,206.50 in cash and 4,202,720 shares of its common stock at a price of $2.98 per share, with a deferred cash payment of $12,524,103.25 to be made 12 months following the initial closing date.

“These four dispensaries to be acquired culminate a tremendous run over the last week in which we announced the planned acquisitions of 22 dispensaries in Colorado,” commented Andy Williams, Co-Founder and Chief Executive Officer of Medicine Man Technologies.  “With an estimated 35% EBITDA margin, these retail stores are collectively expected to be some of the most profitable in our portfolio. We seek acquisition targets that meet strict operational and financial criteria, such as having a seasoned management team, commitment to high-quality products and services, and strong revenue growth.”

RootsRx

Last week Medicine Man Technologies said it was buying Roots Rx, a cannabis operator with six dispensaries located in the ski and mountain towns of Colorado. As part of the deal, the company will also get Roots Rx’s outdoor cultivation facilities located outside of Aspen. RootsRx cost $15 million and was also a combination of cash and stock. The six dispensaries that will be acquired in this transaction are located in AspenBasaltEagleVailEdwardsLeadville, and Gunnison.

More Deals

Also last week, the company said it was buying Colorado Harvest Company, which operates two dispensaries in Denver and one in nearby Aurora. That deal cost $12.5 million and was also a combination of cash and stock. Still not done, the company also said it was picking up an additional four unnamed dispensaries for $36 million. Williams added, “This proposed acquisition of these additional dispensaries will continue the expansion of our retail presence in Colorado.”

TJ Joudeh, the Managing Partner of the group of retail operations being acquired by Medicine Man in this transaction, commented, “We are excited to join the Medicine Man Technologies team to create a profitable and vertically integrated cannabis company. Combining our retail experience with the deep product supply of award-winning cannabis products from Medicine Man Technologies will be an incredible development for both companies as well as for consumers.

Starbuds’ five dispensaries were grabbed for $31 million last week as well. “Adding these five dispensaries to our Colorado operations will make our vertical supply strategy more efficient and help us grab additional market share through added retail capacity,” said Williams. “The Starbuds dispensary operations are truly top-tier in terms of brand, revenue-per-location, and profit across the cannabis retail industry.”

 

 

Debra Borchardt

Debra BorchardtDebra Borchardt

Debra Borchardt is the CEO, Co-Founder, and Editor-In-Chief of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Masters degree in Business Journalism from New York University.


Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 5 hours

Our biggest fans this week: BeckyViator. Thank you! via

@GreenMarketRpt – 18 hours

My week on Twitter 🎉: 10 Mentions, 129K Mention Reach, 4 Likes, 2 Retweets, 32 Retweet Reach. See yours with…

@GreenMarketRpt – 1 day

RT : EXCLUSIVE: sues $DYME $DYMEF as the stock resumes trading. Gotham Green asks for its money back. Co plans layoffs,…

Back to Top

You have Successfully Subscribed!