Medicine Man Technologies, Inc. (OTC: MDCL) said Tuesday it has signed a binding term sheet to purchase five Starbuds dispensaries in Colorado.
Per the agreement, the company will acquire five dispensaries for $31 million, consisting of $15 million in cash, the issuance of 2.6 million common shares at $2.98 per share and a deferred cash payment of $7.75 million.
Medicine Man projects that the dispensaries will achieve more than $19 million in revenue and north of $5.6 million in EBITDA this year.
The dispensaries are located in Louisville, Longmont, Pueblo, Niwot and Commerce City.
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"The acquisition of these dispensaries operating under the prestigious Starbuds brand will truly be a transformational corporate event for us," Andy Williams, co-Founder and CEO of Medicine Man, said in a statement.
"Adding these five dispensaries to our Colorado operations will make our vertical supply strategy more efficient and help us grab additional market share through added retail capacity. The Starbuds dispensary operations are truly top-tier in terms of brand, revenue-per-location and profit across the cannabis retail industry."
Medicine Man is a company that offers cannabis consulting services, nutrients and supplies across 20 states and seven countries.
The stock was trading higher by 1.87% at $2.94 at the time of publication Tuesday.
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Photo courtesy of Medicine Man.
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