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Medicine Man Technologies to sell up to $14 million of stock to PE firm Dye Capital

Ciara Linnane

Medicine Man Technologies Inc. said Thursday it has entered a share sale agreement with private-equity firm Dye Capital & Co. for up to $14 million. The Denver, Colorado-based company will use the funds to finance growth and pending acquisitions, that include research and phytopharmaceuticals company Medicine Man Denver, Los Sueños Farms and cannabis products maker Mesa Organics. Two members of Dye Capital's board, Justin Dye and Leo Rivera, will join the Medicine Man board and Dye, who is managing partner, will become chairman. Dye Capital specializes in investments in the cannabis sector. Before founding Dye Capital, Justin Dye was part of the private-equity consortium that acquired supermarket chain Albertsons Companies. Medicine Man shares were not active premarket, but like many players in the new and speculative cannabis sector, have enjoyed outsize gains this year, rising 204% in 2019 to date, while the S&P 500 has gained 13%.