Medicine Man Technologies, Inc. (OTC: MDCL)'s M&A activity in the cannabis space is ongoing, and this time the Colorado company has its sights set on the international market.
The vertically integrated company said Wednesday that it entered into a binding term sheet with the Colombian company Green Equity S.A.S. to acquire 100% of its assets.
Medicine Man will pay $5.4 million for the company. If approved, the deal will consist of $450,000 in cash as well as 1,292,427 shares of Medicine Man common stock at $3.83 a share.
Need more cannabis news? Check out all of our coverage here.
Why It Matters
The acquisition is the third pending M&A deal Medicine Man has announced in June.
The transaction provides Medicine Man with licenses and IP for international cultivation, exports, extraction, manufacturing and R&D. Going forward, Medicine Man will combine its cultivation methods with access to Green Equity’s 271-acre farm outside Bogotá.
The purchase of Green Equity secures Medicine Man's strategy for global growht, CEO Andy Williams said in a statement.
"We have proven the success of our rollout in Colorado and have developed a world-class reputation that now is ripe with opportunities. We believe that our early entry into the market will allow us to further our goal of becoming a major global player in the cannabis industry and create tremendous value for our shareholders,” Williams said.
Medicine Man shares were trading higher by more than 2 percent to $3.83 at the time of publication Wednesday.
Medicine Man Technologies Makes 2 Cannabis Acquisitions In Colorado
Medicine Man Technologies Posts 65% Year-Over-Year Revenue Increase
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.