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Medicine Man Technologies to Acquire Five Colorado Dispensaries for USD 15m
Tuesday 10 September 2019

10 September 2019 - Colorado, US-based cannabis company Medicine Man Technologies, Inc. (OTCQX: MDCL) has entered into a binding term sheet to acquire five Colorado-based dispensaries operating under the Starbuds brand, the company said.

Under the terms of the transaction, Medicine Man Technologies will purchase the group of five dispensaries for USD 31,005,089, which will consist of USD 15,502,544.50 in cash, the issuance of 2,601,098 shares of its common stock at a price of USD 2.98 per share, and a deferred cash payment of USD 7,751,272.25 to be made 12 months following the initial closing date.

Based on year-to-date results, management expects the dispensaries to generate over USD 19m in revenue in 2019 and in excess of USD 5.6m in EBITDA.

The company's addition of a group of five dispensaries will increase the retail footprint and regional coverage of the company in Colorado.

The company continues to create shareholder value by consolidating some of the most successful cannabis cultivation, manufacturing, and retail operations in Colorado

Medicine Man Technologies is a provider of cannabis consulting services, nutrients and supplies. The company's client portfolio includes active and past clients in 20 states and seven countries throughout the cannabis industry.
Details
Date Published: 10/09/2019
Target: Five Colorado dispensaries operating under the Starbuds brand
Country: USA
Deal Size: 31m (USD)
Sector: Wholesale/Retail
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Vendor:
Buyer: Medicine Man Technologies
Comment:


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