- Colorado Harvest Company operates three retail
centers in the Denver Metro area and is the Company's ninth proposed
acquisition in 2019
- Company will benefit from added
retail scale and cross-selling opportunities given its current strategy
to acquire a fast-growing portfolio of companies and brands
- Industry pioneers Tim Cullen and
Ralph Morgan, Co-Founders of Colorado Harvest Company, bring a wealth of
retail experience and their proprietary, all-natural strains to the
Company
Medicine Man Technologies, Inc. (OTCQX: MDCL)
("Medicine Man Technologies" or the "Company"), announced today that it
has entered into a binding term sheet to acquire Colorado Harvest
Company ("Colorado Harvest"), an operator of two leading cannabis
dispensaries in Denver and one in nearby Aurora.
Under the terms of the transaction, Medicine Man Technologies will purchase Colorado Harvest for $12.5 million, or 1.25 times its anticipated 2019 revenue of $10 million. The purchase price will consist of $4 million in cash and $8.5 million in Company stock, equating to 2,881,356 shares issued at $2.95
per share. 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.
"Tim and Ralph are early industry pioneers that built an avid following
for their proprietary naturally grown strains when recreational cannabis
was legalized in Colorado," said Andy Williams,
Co-Founder and Chief Executive Officer of Medicine Man Technologies.
"Given their many years of underlying cultivation experience, Tim and
Ralph have perfected their formula for growing cannabis naturally with a
focus on utmost quality using environmentally sensitive grow practices
that many consumers enjoy. Their combined cannabis knowledge even led
them to begin producing CO2-extracted cannabis oil that they
later turned into a company called O.penVAPE, now the leading cannabis
personal vaporizer in the country. Adding their deep retail,
cultivation, and product development experience to the Company will
prove very beneficial as we continue with our plans to vertically
integrate our business and look for future cross-selling opportunities
from our expanding operations."
For more information about Medicine Man Technologies, please visit https://www.medicinemantechnologies.com.
About Colorado Harvest CompanyFounded in 2009 by Tim Cullen and Ralph Morgan, Colorado Harvest Company has an extensive selection of quality concentrates, edibles, and over 70 strains of in-house cannabis. The dispensaries have a reputation of providing quality products at a great value with a knowledgeable and friendly staff. Colorado Harvest Company's two modern grow facilities supply the three robust retail locations with fresh batches of Colorado's finest indoor strains, multiple times per week.
About Medicine Man TechnologiesDenver, 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 the 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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