Medicine Man Technologies Continues Colorado Retail Expansion, Acquires 4 More Dispensaries
Cannabis company Medicine Man Technologies, Inc. (OTC: MDCL) said Thursday it has signed a binding term sheet to purchase four additional Colorado dispensaries.
The newest additions are part of the company’s expansion in the Centennial State. Earlier this week, Medicine Man said it will acquire Colorado Harvest Company an operator of three cannabis dispensaries, and entered a binding term sheet to acquire five Starbuds dispensaries.
Under the deal announced Thursday, Medicine Men Technologies said it will buy four dispensaries for $37 million, consisting of $18.45 million in cash, the issuance of 3.1 million common shares with a price of $2.98 each and a deferred cash payment of $9.22 million.
Three of those newly purchased dispensaries are based in Denver and the fourth is in Aurora.
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"Post acquisitions, we will have four, what we believe to be, highly successful dispensaries that will carry our wide assortment of cannabis products, bringing efficiencies to our business and helping us scale our operations. Our focus is on building a vertically integrated cannabis company, and we believe that this acquisition will help us achieve an acceleration on the retail component of our strategy," Andy Williams, co-founder and CEO of Medicine Man, said in a statement.
Medicine Man shares were down 1.94% at $3.04 at the time of publication.
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