Source: Medicine Man Technologies, Inc. 8/19/19
Medicine Man Technologies, Inc. (OTCQX: MDCL) ("Medicine Man Technologies" or the "Company"), today 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 1.25x 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."
For more information about Medicine Man Technologies, please visit https://www.medicinemantechnologies.com.
About Medicine Man Technologies
Denver, Colorado-based Medicine Man Technologies (OTCQX: MDCL)
is a rapidly growing provider of cannabis consulting services,
nutrients and supplies. The Company's client portfolio includes active
and past clients in 20 states and 7 countries throughout the cannabis
industry. The Company has entered into agreements to become one of the
largest vertically integrated seed-to-sale operators in the global
cannabis industry. Current agreements will enable Medicine Man
Technologies to offer cultivation, extraction, distribution and retail
pharma-grade products internationally. The Company's intellectual
property includes the ""Three A Light"" methodology for cannabis
cultivation and pending acquisition candidate MedPharm's GMP-certified
facility, which has the first cannabis research license to conduct
clinical trials in the United States.
Management includes decades of cannabis experience, a unique combination
of first movers in industrial cannabis and proven Fortune 500 corporate
executives.
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