U.S. Markets closed

Medicine Man Technologies To Buy Edible Maker Canyon LLC For $5.3M

Nina Zdinjak

Medicine Man Technologies, Inc. (OTC: MDCL) said Thursday it has signed a binding term sheet to acquire Canyon LLC,  a Colorado producer of premium-infused edibles.

The purchase price is $5.13 million in cash and common stock that will be fixed in the long form agreement, according to Medicine Man. The amount payable in cash wouldn’t exceed $2.565 million, and the shares will have a value of $3.07 per share.

"Canyon has been on our radar for several years given its strong following and high-quality manufacturing and extraction methods. Its proprietary process using CO2 to extract cannabis oil from plant materials yields flavorful products. From hard candies, capsules and micro-dosed gummies to its cannabis-infused beverages, the unique products derived from its cannabis oil have gained a deserving reputation and garnered a tremendous customer base," Medicine Man CEO and co-founder Andy Williams said in a statement. 

Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.

Bigger corporate competitors are seeking to enter the Colorado, said Morgan Iwersen, co-owner and CEO of Canyon LLC. 

Morgan Iwersen, Founder, Co-Owner, and CEO of Canyon LLC also commented on the acquisition.  

"We felt it was time to join the Medicine Man Technologies family to help build a stronger unified company that can remain competitive with these larger corporations but still maintain the authenticity of our Colorado roots."

Canyon is expected to deliver gross revenue of $3.3 million this year, according to Thursday's release. 

Medicine Man shares were up 2.37% at $3.89 at the close Wednesday. 

Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.

Photo courtesy of Medicine Man. 

See more from Benzinga

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.