Schwazze,(OTCQX: SHWZ) has closed the transaction to acquire Colorado-based MCG, LLC also known as Emerald Fields. Emerald Fields is the owner and operator of two retail cannabis dispensaries, located in Manitou Springs and Glendale, Colorado. This acquisition is part of the company’s ongoing retail expansion plan in Colorado and New Mexico, bringing the total number of dispensaries the Company operates to 32.
Total consideration for the acquisition is $29 million and will be paid as 60% cash and 40% Schwazze common stock upon closing. This is an estimated 3.8 multiple on 2021 Adjusted EBITDA.
“Our team is delighted to add the Emerald Fields Cannaboutiques to our growing portfolio of dispensaries and are eager to welcome the team to Schwazze. Manitou Springs and Glendale are attractive locations and valuable assets to our overall growth plan as we continue to build out Colorado. Our team is excited to add another store brand to our house of brands.” said Justin Dye, Schwazze’s CEO.
High Tide Inc. (Nasdaq: HITI) has completed its acquisition of Bud Room Inc. as well as assignments of the vendors’ shareholder loans, for C$3.6 million and acquired all rights to the customized Fastendr retail kiosk and smart locker technology and Bud Room’s retail cannabis store located in Ottawa, Ontario.
The company said in a statement that the acquisition will provide the following elements:
- High Tide through this acquisition gains ownership of the Fastendr technology which will improve the Company’s competitive advantage in bricks-and mortar cannabis retail.
- A pilot conducted at Bud Room’s Ottawa location found that over 60% of customers preferred to use the Fastendr™ kiosks and spent over 20% more when doing so.
- All existing and future Canna Cabana locations will be equipped with this customized and innovative kiosk and smart locker technology as it delivers a faster customer experience in busier retail locations while also enabling the efficient operation of smaller footprint stores.
- High Tide intends to license this technology to third party retailers starting with the cannabis industry, and expanding to other retail sectors across North America and beyond.
- This technology provides High Tide with potential new revenue generation, data collection and monetization opportunities from third party retail locations, and will further enhance the value of its Cabannalytics data insights offering.
Bud Room’s founder and Chief Executive Officer, Michael DiDuca will remain engaged with the High Tide team assisting in launching Fastendr. High Tide granted 13,538 stock options to DiDuca exercisable at C$6.25 per High Tide Share for a period of 3 years.