Medicine Man Technologies, Inc. has entered into a binding term sheet to acquire four additional dispensaries in Colorado.
Under the terms of the transaction, Medicine Man Technologies will purchase the group of four dispensaries for $36,898,499, which will consist of $18,449,249.50 in cash, the issuance of 3,095,512 shares of its common stock at a price of $2.98 per share, and a deferred cash payment of $9,224,624.75 to be made twelve months following the initial closing date.
“This proposed acquisition of these additional dispensaries will continue the expansion of our retail presence in Colorado,” stated Andy Williams, Co-Founder and Chief Executive Officer (CEO) of Medicine Man Technologies. “Post acquisitions, we will have four, what we believe to be, highly successful dispensaries that will carry our wide assortment of cannabis products, bringing efficiencies to our business and helping us scale our operations. Our focus is on building a vertically integrated cannabis company, and we believe that this acquisition will help us achieve an acceleration on the retail component of our strategy.”
TJ Joudeh, the Managing Partner of the group of retail operations being acquired by the Company 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. We are thrilled to be part of what could very well be the most compelling story in the cannabis industry.”
Three of the four dispensaries being acquired in this transaction are located in Denver, and the fourth is in nearby Aurora.
The terms of the transaction can also be referenced in the Company’s 8-K, which outlines the closing conditions and are conditioned upon the satisfaction or mutual waiver of certain conditions, including regulatory approval.
For more information about Medicine Man Technologies, please visit https://www.medicinemantechnologies.com.