Schwazze, formerly known as Medicine Man Technologies Inc. has completed its acquisition of Mesa Organics and its Purplebee’s business.
The closing of Mesa Organics represents the first of the Company’s previously announced pending acquisition it has entered into in Colorado with established and proven cannabis companies. The Company set these acquisitions in motion after a Colorado law change, House Bill 19-1090, allowed for public-company ownership—a law the Company’s leadership lobbied on behalf of for years. After finalizing these acquisitions, Schwazze will be one of the largest vertically integrated cannabis operators. Upon the completion of its announced acquisitions, the Company’s portfolio will consist of top-tier licensed brands spanning cultivation, extraction, infused-product manufacturing, dispensary operations, and robust product innovation and development all under one entity.
Mesa Organics operates four dispensaries throughout southern Colorado in Pueblo, Ordway, Rocky Ford, and Las Animas. Purplebee’s is a leading pure CO2 and ethanol extractor and manufacturer, as well as a producer of cannabis products for some of the leading edible companies across the state.
At Schwazze, we are building an extraordinary team and investing in team members, differentiated capabilities, innovative products and growing profitable businesses. Mesa Organics is a terrific business with strong leadership, talent and strong manufacturing and retail operations.
We are excited to take the first step in our acquisition strategy and Mesa Organics and Purplebee’s are a great strategic fit. “We welcome the talented Mesa Organics and Purplebee’s group to our growing team. This transaction represents the first of many we look forward to closing this year.
“We are very excited to be joining the Schwazze family,” said Dr. Jim Parco, Co-founder of Mesa Organics and Purplebee’s. “Schwazze’s vision of creating a leading vertically integrated cannabis company resonates greatly with me, and we are proud to be the inaugural acquisition as part of the largest roll-up in the state of Colorado. This is a milestone event for us and a testament to what we have accomplished over the past few years in serving our communities in a socially responsible manner with high-quality cannabis products. We look forward to teaming up with Schwazze family and future merger partners to build the most admired cannabis company.”Under the terms of the agreement, which has been unanimously approved by the Medicine Man Technologies, Inc. Board of Directors, the purchase consideration for the merger is approximately $2.6 million in cash and approximately 2.6 million in shares of common stock, subject to certain holdback and adjustment provisions.