Denver, CO – September 19, 2019 – REPUBLISHED – Medicine Man Technologies, Inc. (OTCQX: MDCL) (“Medicine Man Technologies” or the “Company”) announced a culmination of its roll-up strategy today that would solidify the Company as one of the largest vertically integrated cannabis operators in North America upon closing of these pending acquisitions—and as a deeply experienced retailer and manufacturer of cannabis-infused products and concentrates driven by a leadership team that has unprecedented experience in regulated cannabis markets.
As previously disclosed, the Company—which also includes a new executive team with decades of experience in mergers & acquisitions, private equity, strategic operations and corporate finance—has entered into binding term sheets to acquire some of the best-selling cannabis brands in the legal Colorado cannabis industry, a combination of pending transactions that spans 12 cultivation facilities (including Los Sueños Farms LLC, one of North America’s largest sustainable cannabis farms); seven proprietary extraction facilities (including Purplebee’s); seven manufacturers of infused products (including Medically Correct, one of Colorado’s largest edible manufacturers; licensed producer of incredibles in Colorado, and creators of new brands Quiq and Nove, set to launch this fall); 33 strategically located retail dispensaries (including five Starbuds-branded dispensaries in Colorado); and a state-of-the-art manufacturing / research and development lab (MedPharm’s Colorado facility has the first and only active cannabis research license in the state).
These acquisitions are made possible by the passage of House Bill 19-1090, which was signed into law by Colorado Gov. Jared Polis on May 29, 2019, thus opening up Colorado’s cannabis industry to outside investors and enabling increased investment by venture capitalists and private equity firms. Medicine Man Technologies Chief Executive Officer Andy Williams was a major driving force behind the Colorado cannabis industry’s push for public company ownership legislation, and he also sat on the rulemaking committee after the legislation was passed.
This new legislation allows public companies to wholly acquire licensed businesses in Colorado on or after Nov. 1, 2019, though these acquisitions would likely become final towards the end of the first or in the second quarter of 2020, pending due diligence, approval from local and state governments, and any other additional customary closing conditions.
“The natural progression of the modern cannabis industry is consolidation, and our vision for the future of Medicine Man Technologies has always been to bring together a group of experienced cannabis industry pioneers and the leading brands they’ve created—and we’re proud to finally tell the world about this years-in-the-making strategy coming to fruition,” said Andy Williams, Co-Founder and Chief Executive Officer of Medicine Man Technologies. “Not only are we banding together with other pioneers of the regulated cannabis market, but we’re bringing together a dozen individually profitable companies into a single publicly traded outfit, and we believe we are strategically positioned to increase efficiencies and profit margin over time.”
Medicine Man Technologies has entered into binding term sheets to acquire cultivation facility Los Sueños Farms LLC; diversified dispensary groups including Medicine Man, Colorado Harvest Company, Strawberry Fields, Roots Rx, Mesa Organics, and diverse dispensary locations owned by various ownership groups some run under the name Starbuds; infused products companies Medically Correct and Canyon LLC; concentrates manufacturers Dabble Extracts and Purplebee’s; R&D, intellectual property and holding company / phytopharmaceutical-grade dosage form manufacturer (home to product brands become, BATCH and Aliviar) MedPharm Holdings; and Colombia-based Green Equity, which holds international import and export licenses and IP for cultivation, manufacturing, extraction and R&D—and a 271-acre farm located outside Bogotá.
These veteran executive teams have a combined 150-plus years of experience in regulated cannabis markets, including Medically Correct Founders Rick Scarpello and Bob Eschino, Los Sueños Farms Founder Bob DeGabrielle (who joined the Company’s Board of Directors), Medicine Man Chief Executive Officer Sally Vander Veer, Co-Founder Pete Williams and Founding Member Pete Vasquez, Colorado Harvest Company Co-Founders Tim Cullen and Ralph Morgan, Canyon LLC Founder and Chief Executive Officer Morgan Iwersen, Starbuds Founder and Chief Executive Officer Brian Ruden and Managing Partner TJ Joudeh, Strawberry Fields Co-Founders Mike and Rich Kwesell, MedPharm Holdings Chief Executive Officer Albert Gutierrez, Mesa Organics Owners Jim and Pam Parco, Dabble Extracts Founder Josh Hindi, Roots Rx executives Robert Holmes and Steven Miller and others.
“Colorado operators are the most experienced and best-positioned operators in the world, and we’ve created some of the most tried-and-true brands in one of the most tightly regulated markets in the country,” said Williams of Colorado’s cannabis market, which is one of the largest cannabis markets in the U.S. “We’ve been watching the consolidation happening all around us, but while so many other multi-state operators have the money, they lack the experience with and passion for the plant. I like to say this collective talent pool has solved cannabis operating challenges that other companies don’t yet know they are going to have. And soon we will have economies of scale on our side.”
Most of these businesses report EBITDAs averaging around 20%, but Williams and his new colleagues believe they can increase those EBITDAs to approximately 30% via collaborative growth and the forthcoming economies of scale.
“Together we are creating Colorado’s premier cannabis company,” said Brian Ruden, Chief Executive Officer of Starbuds. “My colleague TJ Joudeh and I are proud to join forces with this team of Colorado cannabis pioneers, and we are confident that this network of industry-leading businesses across cultivation, extraction, production, retail and R&D business segments will become a formidable force in North American cannabis.”
The Company has received a recent capital commitment up to $21 million from strategic partner Dye Capital, whose Managing Partner Justin Dye has 25 years of experience in private equity, general management, operations, strategy, corporate finance and M&A and was recently appointed Chairman of the Board of Medicine Man Technologies. Dye Capital Partner Leo Riera, who has more than 30 years of experience in investment banking and fund management and was the Country Head for Bankers Trust in Venezuela for over a decade, was also appointed to the Company’s Board of Directors.
“This team has been strategically assembled for maximum impact—from my colleagues and myself in tactical plant-touching operations to our colleagues who bring vast experience in M&A and integration,” said Medically Correct Founder Bob Eschino. “We are confident in this group’s ability to fully take advantage of this first-of-its-kind opportunity.”
The Company is prepared for the important work ahead, thanks to its experienced executives and consultants who bring essential skillsets in public markets to the table.
Chief Operating Officer Joe Puglise is a seasoned executive in operational management, including past work as President of New York properties for iHeartMedia, where he oversaw approximately 300 employees and almost $200 million in annual revenue and $100 million in annual EBITDA. Since Joe joined the Company in 2018, Medicine Man Technologies has gained over +165%, while the New Cannabis Ventures’ Global Cannabis Stock Index tracker has retreated -10%, as of close of market Sept. 13, 2019. Senior Vice President of Finance Nancy Bush Huber brings over 25 years of executive management roles, including Chief Financial Officer and Vice President of Finance, for both public and private companies. Huber will be instrumental in establishing and managing the Company’s financial reporting and capital allocation processes.
General Counsel, Hon. Dan Pabon, brings expertise in emerging regulatory systems and system design, and he also has established strategic federal, state and local relationships over his 20 years of involvement in public decision-making. Chief Administrative Officer Lee Dayton Jr. brings over 25 years of investment banking and corporate development experience. Chief Strategy Officer Todd Williams brings more than 25 years of asset valuation and M&A experience. Former United Airlines Chief Information Officer Nirup Krishnamurthy, a technology and operations executive with over 20 years of experience across industries, will lead the Company’s technology integration. And at only 33, Chief Cultivation Officer Josh Haupt is already known as the “Steve Jobs of cannabis,” having literally written the book, Three A Light, on cultivation excellence.
“This well-rounded team has been assembled to include experts from each side of the regulated cannabis and public markets paradigms, and MedPharm Holdings is honored to be joining forces with such thoughtful professionals—many of whom we’ve admired for years,” said Dr. Tyrell Towle, MedPharm’s Director of Chemistry and Extraction. “Medicine Man Technologies will be able to cover the cannabis life cycle from its foundations in agriculture to its many end uses with consumers, and the scientist in me is confident that this team has what it takes to create a world-class cannabis company that will continue to lead by example.”
About Medicine Man Technologies
Denver, Colorado-based Medicine Man Technologies (OTCQX: MDCL) is a rapidly growing 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. The Company has entered into agreements to become one of the largest vertically integrated seed-to-sale operators in the global cannabis industry. Current agreements will enable Medicine Man Technologies to offer cultivation, extraction, distribution and retail pharma-grade products internationally. The Company’s intellectual property includes the “Three A Light” methodology for cannabis cultivation and pending acquisition candidate MedPharm’s GMP-certified facility, which has the first cannabis research license to conduct clinical trials in the United States. Management includes decades of cannabis experience, a unique combination of first movers in industrial cannabis and proven Fortune 500 corporate executives.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services; (ii) our ability to complete and integrate acquisitions; (iii) general industry and economic conditions; and (iv) our ability to access adequate financing on terms and conditions that are acceptable to us, as well as other risks identified in our filings with the SEC. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise. We note that as to all referenced potential acquisitions: (i) we have not performed business, financial, accounting or legal due diligence, (ii) each contemplates entering into a definitive agreement and no such definitive agreement has been executed,(iii) financial information and projections relating to these potential acquisitions is based solely on information provided by the target companies, without review by us or independent verification, and historical financial information of the potential acquisitions targets is unaudited , (iv) each of these potential acquisitions and any projected financial information is subject to substantial risks and uncertainties,(v) completing these acquisitions and executing on our strategy will require MMT to secure additional financing and (vi) completing each of these acquisitions is subject to obtaining regulatory approvals. There can be no assurance that the proposed acquisitions will in fact be consummated on the terms and in the manner previously disclosed or at all. Forward looking statements are dynamic and subject to change. Our forward-looking statements speak only as of the date they are given and do not necessarily reflect our outlook at any other point in time. We do not undertake to update or revise these forward-looking statements. Inevitably some assumptions underlying projections will not materialize and unexpected events and circumstances may affect ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic, regulatory, and competitive risks. Actual results achieved may vary materially from the projections or other forward-looking statements. There are substantial risks and uncertainties relating to integrating an acquisition and we contemplate completing and integrating a substantial number of acquisitions which enhances the risks and uncertainties.
Investor Relations Contact:
ir@medicinemantechnologies.com
1-866-348-1997
SOURCE Medicine Man Technologies, Inc.
Denver, CO – September 12, 2019 – Medicine Man Technologies, Inc. (OTCQX: MDCL) (“Medicine Man Technologies” or the “Company”), announced today that it has entered into a binding term sheet to acquire Canyon LLC (“Canyon”), a leading Colorado manufacturer of all-natural, discreet, and highly effective premium-infused edibles.
Under the terms of the transaction, Medicine Man Technologies will purchase Canyon LLC for $5.13 million, payable in cash and common stock of the Company that will be determined and set forth in the long form agreement among the parties. The cash consideration, however, will not be greater than $2.565 million and the shares of common stock will be valued at $3.07 per share. Based upon the year-to-date results, Canyon is expected to generate gross revenues of $3.3 million in 2019. The purchase price may be subject to adjustment, which will be detailed in the long form agreement entered into among the parties.
“Our latest series of announcements have been predicated on building out our footprint of retail dispensaries,” said Andy Williams, Co-Founder and Chief Executive Officer of Medicine Man Technologies. “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. We believe this acquisition is important in furthering the build-out of our infrastructure and diversifying our branded product offerings.”
“Like Andy and the rest of his growing family of industry pioneers, we have been around since before the state went recreational,” said Morgan Iwersen, Founder, Co-Owner, and Chief Executive Officer of Canyon LLC. “We have conducted business with Andy over the years and have also come to recognize and admire him for being an influential driving force for our industry. With a lot of bigger corporate competitors looking to enter the state now, 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.”
“The time is right for Colorado companies to join forces and create a more expandable and national brand that can grow profitably despite external competition from corporate cannabis,” added Andrew Iwersen, Co-Owner and Managing Partner of Canyon LLC.
Management cautions that there can be no assurance that the targeted acquisition will achieve the stated gross revenue projection.
More information regarding the binding term sheet, including the closing conditions, are set forth in the Company’s current report on Form 8-K.
For more information about Medicine Man Technologies, please visit https://www.medicinemantechnologies.com.
About Canyon LLC
Founded in 2009, Canyon LLC is one of Colorado’s leading manufacturers of all-natural, discreet, and highly effective premium-infused edibles. All of its products are gluten-free, GMO-free, and made in-house using a proprietary extraction process that uses high-quality all-natural ingredients and is completely free of any non-medicinal plant constituents. Each batch of essential cannabis oil produced is tested both on and off-site to ensure that every dose its customers consume is pure and safe and delivers the same level of relief every time. Its hard candies, suckers, capsules, and cannabis-infused nitro brew coffee are known for their delicious flavors, long-lasting effects, and minimal cannabis flavor.
About Medicine Man Technologies
Denver, Colorado-based Medicine Man Technologies (OTCQX: MDCL) is a rapidly growing 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. The Company has entered into agreements to become one of the largest vertically integrated seed-to-sale operators in the global cannabis industry. Current agreements will enable Medicine Man Technologies to offer cultivation, extraction, distribution and retail pharma-grade products internationally. The Company’s intellectual property includes the “Three A Light” methodology for cannabis cultivation and pending acquisition candidate MedPharm’s GMP-certified facility, which has the first cannabis research license to conduct clinical trials in the United States. Management includes decades of cannabis experience, a unique combination of first movers in industrial cannabis and proven Fortune 500 corporate executives.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks and uncertainties include, without limitation, risks, and uncertainties associated with (i) regulatory limitations on our products and services; (ii) our ability to complete and integrate acquisitions; (iii) general industry and economic conditions; and (iv) our ability to access adequate financing on terms and conditions that are acceptable to us, as well as other risks identified in our filings with the SEC. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events, or otherwise.
Investor Relations Contact:
ir@medicinemantechnologies.com
1-866-348-1997
Source: Medicine Man Technologies
– This group of four dispensaries is expected to have EBITDA margins of 35% in 2019 and will be among the most profitable retail locations in the Company’s portfolio, upon transaction closing
– Company is now on pace to operate a total of 27 dispensaries in Colorado, following the close of pending transactions
Denver, CO – September 9, 2019 – Medicine Man Technologies, Inc. (OTCQX: MDCL) (“Medicine Man Technologies” or the “Company”), announced today that it has entered into a binding term sheet to acquire four additional dispensaries in Colorado from a leading cannabis retailer.
Under the terms of the transaction, Medicine Man Technologies will purchase the group of four dispensaries for $50,096,413, consisting of $25,048,206.50 in cash, the issuance of 4,202,720 shares of its common stock at a price of $2.98 per share, and a deferred cash payment of $12,524,103.25 to be made 12 months following the initial closing date.
“These four dispensaries to be acquired culminate a tremendous run over the last week in which we announced the planned acquisitions of 22 dispensaries in Colorado,” commented Andy Williams, Co-Founder and Chief Executive Officer of Medicine Man Technologies. “With an estimated 35% EBITDA margin, these retail stores are collectively expected to be some of the most profitable in our portfolio. We seek acquisition targets that meet strict operational and financial criteria, such as having a seasoned management team, commitment to high quality products and services, and strong revenue growth. Our new partners are aligned with our overall strategic objectives and will help accelerate our drive towards profitable growth, allowing us to compete and thrive in the rapidly changing cannabis industry. These shared core values will make our company culture even stronger and better positioned as we scale our business. The recognized and accomplished cannabis pioneers we are adding to our Company’s family distinguish us from many other industry competitors and will help us significantly expand our operations.”
The four dispensaries to be acquired in this transaction are located in Denver, Aurora, Pueblo West, and Mountain View, with the fifth location currently under construction.
Management cautions that there can be no assurance that the dispensaries will achieve the stated revenue and EBITDA projections. The terms of the transaction can also be referenced in the Company’s 8-K, which outlines the closing conditions that are dependent upon the satisfaction or mutual waiver of certain stipulations.
For more information about Medicine Man Technologies, please visit https://www.medicinemantechnologies.com.
About Medicine Man Technologies
Denver, Colorado-based Medicine Man Technologies (OTCQX: MDCL) is a rapidly growing provider of cannabis consulting services, nutrients and supplies. The Company’s client portfolio includes active and past clients in 20 states and 7 countries throughout the cannabis industry. The Company has entered into agreements to become one of the largest vertically integrated seed-to-sale operators in the global cannabis industry. Current agreements will enable Medicine Man Technologies to offer cultivation, extraction, distribution and retail pharma-grade products internationally. The Company’s intellectual property includes the “Three A Light” methodology for cannabis cultivation and pending acquisition candidate MedPharm’s GMP-certified facility, which has the first cannabis research license to conduct clinical trials in the United States. Management includes decades of cannabis experience, a unique combination of first movers in industrial cannabis and proven Fortune 500 corporate executives.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services; (ii) our ability to complete and integrate acquisitions; (iii) general industry and economic conditions; and (iv) our ability to access adequate financing on terms and conditions that are acceptable to us, as well as other risks identified in our filings with the SEC. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Investor Relations Contact:
ir@medicinemantechnologies.com1-866-348-1997
SOURCE Medicine Man Technologies, Inc.
– Upon closing of pending acquisitions, the Company will operate a total of 14 dispensaries within Colorado
– The acquisitions are part of MMT’s strategy aimed at creating an integrated operation, to include proven and profitable cultivation, manufacturing and retail assets in Colorado.
Denver, CO – Sept. 5, 2019 – Medicine Man Technologies, Inc. (OTCQX: MDCL) (“Medicine Man Technologies” or the “Company”), announced today that it has entered into a binding term sheet to acquire four additional dispensaries in Colorado.
Under the terms of the transaction, Medicine Man Technologies will purchase the group of four dispensaries for $36,898,499, which will consist of $18,449,249.50 in cash, the issuance of 3,095,512 shares of its common stock at a price of $2.98 per share, and a deferred cash payment of $9,224,624.75 to be made twelve months following the initial closing date.
“This proposed acquisition of these additional dispensaries will continue the expansion of our retail presence in Colorado,” stated Andy Williams, Co-Founder and Chief Executive Officer (CEO) of Medicine Man Technologies. “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.”
TJ Joudeh, the Managing Partner of the group of retail operations being acquired by the Company in this transaction, commented, “We are excited to join the Medicine Man Technologies team to create a profitable and vertically integrated cannabis company. Combining our retail experience with the deep product supply of award-winning cannabis products from Medicine Man Technologies will be an incredible development for both companies as well as for consumers. We are thrilled to be part of what could very well be the most compelling story in the cannabis industry.”
Three of the four dispensaries being acquired in this transaction are located in Denver, and the fourth is in nearby Aurora.
The terms of the transaction can also be referenced in the Company’s 8-K, which outlines the closing conditions and are conditioned upon the satisfaction or mutual waiver of certain conditions, including regulatory approval.
For more information about Medicine Man Technologies, please visit https://www.medicinemantechnologies.com.
About Medicine Man Technologies
Denver, Colorado-based Medicine Man Technologies (OTCQX: MDCL) is a rapidly growing provider of cannabis consulting services, nutrients and supplies. The Company’s client portfolio includes active and past clients in 20 states and 7 countries throughout the cannabis industry. The Company has entered into agreements to become one of the largest vertically integrated seed-to-sale operators in the global cannabis industry. Current agreements will enable Medicine Man Technologies to offer cultivation, extraction, distribution and retail pharma-grade products internationally. The Company’s intellectual property includes the “Three A Light” methodology for cannabis cultivation and pending acquisition candidate MedPharm’s GMP-certified facility, which has the first cannabis research license to conduct clinical trials in the United States. Management includes decades of cannabis experience, a unique combination of first movers in industrial cannabis and proven Fortune 500 corporate executives.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services; (ii) our ability to complete and integrate acquisitions; (iii) general industry and economic conditions; and (iv) our ability to access adequate financing on terms and conditions that are acceptable to us, as well as other risks identified in our filings with the SEC. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Investor Relations Contact:
ir@medicinemantechnologies.com
1-866-348-1997
SOURCE Medicine Man Technologies, Inc.
– Colorado Harvest Company operates three retail centers in the Denver Metro area and is the Company’s ninth proposed acquisition in 2019
– Company will benefit from added retail scale and cross-selling opportunities given its current strategy to acquire a fast-growing portfolio of companies and brands
– Industry pioneers Tim Cullen and Ralph Morgan, Co-Founders of Colorado Harvest Company, bring a wealth of retail experience and their proprietary, all-natural strains to the Company
Denver, CO – Sept. 4, 2019 – Medicine Man Technologies, Inc. (OTCQX: MDCL) (“Medicine Man Technologies” or the “Company”), announced today that it has entered into a binding term sheet to acquire Colorado Harvest Company (“Colorado Harvest”), an operator of two leading cannabis dispensaries in Denver and one in nearby Aurora.
Under the terms of the transaction, Medicine Man Technologies will purchase Colorado Harvest for $12.5 million, or 1.25 times its anticipated 2019 revenue of $10 million. The purchase price will consist of $4 million in cash and $8.5 million in Company stock, equating to 2,881,356 shares issued at $2.95 per share. The terms of the transaction can also be referenced in the Company’s 8-K, which outlines the closing conditions and are conditioned upon the satisfaction or mutual waiver of certain conditions, including regulatory approval.
“Tim and Ralph are early industry pioneers that built an avid following for their proprietary naturally grown strains when recreational cannabis was legalized in Colorado,” said Andy Williams, Co-Founder and Chief Executive Officer of Medicine Man Technologies. “Given their many years of underlying cultivation experience, Tim and Ralph have perfected their formula for growing cannabis naturally with a focus on utmost quality using environmentally sensitive grow practices that many consumers enjoy. Their combined cannabis knowledge even led them to begin producing CO2-extracted cannabis oil that they later turned into a company called O.penVAPE, now the leading cannabis personal vaporizer in the country. Adding their deep retail, cultivation, and product development experience to the Company will prove very beneficial as we continue with our plans to vertically integrate our business and look for future cross-selling opportunities from our expanding operations.”
“Colorado HB 19-1090 has ushered in the next phase of development for the Colorado cannabis industry by permitting outside investors to invest in the Colorado cannabis space,” said Tim Cullen, Chief Executive Officer of Colorado Harvest Company. “Following the passage of this law, the time was never more right for us to join the outstanding team at Medicine Man Technologies, who is now free to invest in the industry, given the synergies involved. Their growing team of Colorado cannabis pioneers is very impressive, and we are happy to be aligned with their joint efforts, all soon to be under one roof. Furthermore, the management team at Medicine Man Technologies is incredibly accomplished, and they are executing successfully on their plan to bring financial discipline and a clear strategy in their efforts to build the region’s premier cannabis company. We are delighted to join them in this next leg of growth.”
For more information about Medicine Man Technologies, please visit https://www.medicinemantechnologies.com.
About Colorado Harvest Company
Founded in 2009 by Tim Cullen and Ralph Morgan, Colorado Harvest Company has an extensive selection of quality concentrates, edibles, and over 70 strains of in-house cannabis. The dispensaries have a reputation of providing quality products at a great value with a knowledgeable and friendly staff. Colorado Harvest Company’s two modern grow facilities supply the three robust retail locations with fresh batches of Colorado’s finest indoor strains, multiple times per week.
About Medicine Man Technologies
Denver, Colorado-based Medicine Man Technologies (OTCQX: MDCL) is a rapidly growing provider of cannabis consulting services, nutrients and supplies. The Company’s client portfolio includes active and past clients in 20 states and 7 countries throughout the cannabis industry. The Company has entered into agreements to become one of the largest vertically integrated seed-to-sale operators in the global cannabis industry. Current agreements will enable Medicine Man Technologies to offer cultivation, extraction, distribution and retail pharma-grade products internationally. The Company’s intellectual property includes the “Three A Light” methodology for cannabis cultivation and the pending acquisition-candidate MedPharm’s GMP-certified facility, which has the first cannabis research license to conduct clinical trials in the United States. Management includes decades of cannabis experience, a unique combination of first movers in industrial cannabis and proven Fortune 500 corporate executives.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services; (ii) our ability to complete and integrate acquisitions; (iii) general industry and economic conditions; and (iv) our ability to access adequate financing on terms and conditions that are acceptable to us, as well as other risks identified in our filings with the SEC. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Investor Relations Contact:
ir@medicinemantechnologies.com
1-866-348-1997
SOURCE Medicine Man Technologies, Inc.
– The Company’s addition of a group of five dispensaries will increase the retail footprint and regional coverage of the Company in Colorado
– As part of the agreement, one of the original industry pioneers, Brian Ruden, will join the Company’s Board of Directors, enhancing the depth of the senior management team, which is unrivaled in the cannabis industry
– The Company continues to create shareholder value by consolidating some of the most successful cannabis cultivation, manufacturing, and retail operations in Colorado
Denver, CO – Sept. 3, 2019 – Medicine Man Technologies, Inc. (OTCQX: MDCL) (“Medicine Man Technologies” or the “Company”), announced today that it has entered into a binding term sheet to acquire five dispensaries operating under the Starbuds brand in Colorado.
Under the terms of the transaction, Medicine Man Technologies will purchase the group of five dispensaries for $31,005,089, which will consist of $15,502,544.50 in cash, the issuance of 2,601,098 shares of its common stock at a price of $2.98 per share, and a deferred cash payment of $7,751,272.25 to be made twelve months following the initial closing date. Based on year-to-date results, management expects the dispensaries to generate over $19 million in revenue in 2019 and in excess of $5.6M in EBITDA.
“The acquisition of these dispensaries operating under the prestigious Starbuds brand will truly be a transformational corporate event for us,” commented Andy Williams, Co-Founder and Chief Executive Officer of Medicine Man Technologies. “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.”
In his trail-blazing efforts, Brian Ruden, the Managing Partner of the group of retail operations being acquired by the Company, has garnered both industry acclaim and brand recognition by creating an exemplary customer experience that includes discounts for cancer patients and veterans. Ruden stated, “I am incredibly excited to join the Medicine Man Technologies team. Together, we are building the most carefully considered cannabis company in the world, with a focus on consumer experience, branding, and profitability.”
“Brian and his team have built an enviable brand and a most successful operation recognized in the industry for its award-winning strains, for its high profitability, and for having the most successful customer loyalty program around,” added CEO Williams. “We happily welcome them and these five locations into the Medicine Man Technologies family.”
The five Starbuds dispensaries being acquired in this transaction are located in Louisville, Longmont, Pueblo, Niwot, and Commerce City.
Management cautions that there can be no assurance that the dispensaries will achieve the stated revenue and EBITDA projections. The terms of the transaction can also be referenced in the Company’s 8-K, which outlines the closing conditions and are conditioned upon the satisfaction or mutual waiver of certain conditions, including regulatory approval.
For more information about Medicine Man Technologies, please visit https://www.medicinemantechnologies.com.
About Medicine Man Technologies
Denver, Colorado-based Medicine Man Technologies (OTCQX: MDCL) is a rapidly growing provider of cannabis consulting services, nutrients and supplies. The Company’s client portfolio includes active and past clients in 20 states and 7 countries throughout the cannabis industry. The Company has entered into agreements to become one of the largest vertically integrated seed-to-sale operators in the global cannabis industry. Current agreements will enable Medicine Man Technologies to offer cultivation, extraction, distribution and retail pharma-grade products internationally. The Company’s intellectual property includes the “”Three A Light”” methodology for cannabis cultivation and pending acquisition candidate MedPharm’s GMP-certified facility, which has the first cannabis research license to conduct clinical trials in the United States. Management includes decades of cannabis experience, a unique combination of first movers in industrial cannabis and proven Fortune 500 corporate executives.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services; (ii) our ability to complete and integrate acquisitions; (iii) general industry and economic conditions; and (iv) our ability to access adequate financing on terms and conditions that are acceptable to us, as well as other risks identified in our filings with the SEC. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Investor Relations Contact:
ir@medicinemantechnologies.com
1-866-348-1997
SOURCE Medicine Man Technologies, Inc.
A BRIEF HISTORY OF MEDICINE MAN TECHNOLOGIES
Medicine Man Technologies is an experienced first-mover and fully integrated operator in the cannabis industry, offering consulting, retail pharma-grade products and turnkey solutions for cannabis cultivators for over a decade. Medicine Man Technologies is leveraging expertise and intellectual property to vertically integrate research, retail, cultivation, formulation and distribution operations with active and past clients in 18 states and seven countries.
Medicine Man Technologies (Ticker: MDCL), offers full-service solutions and a la carte products and services to Clients interested in exploring, entering, or operating in the legal cannabis industry. Our team is composed of cannabis experts with a variety of experience representing cultivation, processing and dispensary operations, finance, compliance, training, design, and other professional skills. Our comprehensive Menu of Services presents your team with the products and solutions to best conduct your cannabis business.
Through our a la carte products and services menu, Medicine Man Technologies provides “off-the-shelf” solutions for clients that may not require a full-service engagement. These items are designed to fulfill specific needs in your planning process or live operation while allowing you to customize the deliverables to meet your requirements. Services may be further customized by our team on a pre-determined hourly rate basis. General consulting is also available to those looking for help with cannabis related topics not listed on our “off-the-shelf” menu. Private consulting fees will be credited back should a client purchase a full-service menu offering. Standard hourly rates apply.
Medicine Man Technologies has experience in consulting individuals and teams with the desire and resources required to enter the cannabis industry. Often, the only thing missing is the experience or “know how” when it comes to designing and operating an efficient cannabis cultivation facility or dispensary. That’s where we come in.
Medicine Man Technologies offers consulting and business planning support for your cannabis business, leveraging the “know how” refined by Medicine Man Denver through 7+ years of operational experience in the Colorado marketplace.
Our risk-averse cannabis cultivation technology delivers consistent, high quality, high yield production within a clean-room style environment. Through our licensure services we provide standard operating procedures for all phases of commercial and industrial cannabis cultivation, from clone to counter. In addition, we provide hands-on training and development for your personnel both at Medicine Man Denver and your facility once operational.
Medicine Man Technologies has experience in all areas of cannabis cultivation including: Cloning, Propagation, Vegetative and Flowering husbandry, Drying and Cure techniques utilizing what we call a VCCH model, or Variable Capacity Continuous Harvest model. Our expert team of consultants possess an extensive knowledge of cannabis plant metabolism and physiology, indoor grow protocols and best practices, and the processing of the harvested crop. We can help your legal cannabis cultivation and associated operation overcome challenges to become a market leader.
Our state-of-the art dispensary model ensures patients and consumers have safe and secure access to a variety of medical and/or recreational cannabis products. Through our licensure services we provide standard operating procedures for dispensary facilities, as well as staffing plans, job descriptions and hands-on training for dispensary personnel both at Medicine Man Denver and your facility once operational.
We work closely with industry-leading extraction partners, who provide the necessary licensing service support and formulations to assist clients with their planned deployment of a successful processing facility. This includes; Dixie Elixirs, Medically Correct, CanCore Concepts, and Tree Frog.
Operating in this emerging industry requires experienced partners who can help you avoid costly mistakes. Medicine Man Technologies’ team of professional consultants can help you navigate the process of becoming a successful cannabis operation. If you’re interested in learning more, we would love to hear from you.
TEAM BIOGRAPHIES
Andy Williams – Chairman of the Board
Andy Williams is among America’s most pioneering thought leaders and entrepreneurs in the legal cannabis space.
As co-founder and CEO of industry-leading consultancy Medicine Man Technologies, Williams has expanded his influence exponentially – helping entrepreneurs in other states via his extensive cultivation expertise and unparalleled business acumen. As a founding partner in phytopharmaceutical company MedPharm, Williams is investing heavily in the future of pharmaceutical-grade cannabis research.
With years of experience in the world’s first regulated market, Williams is a leading expert on the cannabis industry. He has been featured in The New York Times, Rolling Stone, CNN, The Wall Street Journal, BBC and the MSNBC docu-series “Pot Barons,” which focused on Williams as one of the show’s central characters.
Williams continues to elevate his politically active leadership in the ever-expanding marijuana industry, working daily to protect and grow the cannabis industry as a board member with the Cannabis Trade Federation, which works federally on tax reform and other industry-specific issues, and Colorado Leads, a pro-growth organization focusing its efforts locally.
He also serves as a board member for Flatirons Venture Partners, LLC, The American Trade Association for Cannabis and Hemp and as a voting member on ASTM Committee D37 on Cannabis, which is currently developing important standards for cannabis, its products and processes for the esteemed worldwide standards organization.
Williams is proud to serve as co-founder and director of the Medicine Man Family Foundation, a community-focused nonprofit investing in impact-driven projects rooted in the communities in which the Medicine Man brand operates.
Joe Puglise – COO
In his role as COO, Mr. Puglise will be responsible for management of day-to-day sales and general operations activities. Mr. Puglise brings considerable experience in operational management, most recently at the Beekman Group where he serves as an Industry Partner and Board Member for a portfolio company holding, helping them to grow through both organic and acquisition means. Prior to that, he was President of New York properties for iHeartMedia, where he oversaw approximately 300 employees and almost $200m in annual revenue and $100m in annual EBITDA. Additionally, he has held board positions with organizations including the Ad Council of New York, the Annenberg Center at the University of Pennsylvania, Alliance for Lupus Research (ALR) 2014 Walk Co-Chair and Big Brother and Big Sisters of Central Arizona. Mr. Puglise is a 1992 magna cum laude graduate of the Wharton School of Business.
Josh Haupt – Chief Cultivation Officer
Joshua Haupt, recognized as “the Steve Jobs of Marijuana” is being recognized for his innovative growing technique and entrepreneurship in the Cannabis Industry, in addition to his inspiring story that led him there.
After being diagnosed with epilepsy as a young teenager, Haupt turned to cannabis to replace the harmful steroids and medications prescribed to him by his doctors. From there, his budding interest in the cannabis plant bloomed into a fruitful garden. And with countless hours of research and growing trials, Josh perfected his growing methodology. Now Haupt is the Chief Cultivation Officer of Medicine Man Technologies, author of Three A Light, and the owner of Superfarm, Success Nutrients, and Tall T Productions.
His method, morals and operations are radically revolutionizing the cannabis industry. Haupt was born in Hawaii and currently resides in Denver, Colorado.
Todd Williams – Chief Strategy Officer
Todd Williams joins Medicine Man Technologies as Chief Strategy Officer, with more than 24 years of consulting, strategy, asset valuation and M&A experience. In his most recent role in Corporate Development at Albertsons Companies, he managed the acquisition of over 1,600 operating grocery stores with more than $40 billion in sales and $10 billion in transaction value and was also responsible for divesting 168 stores with over $3 billion in sales. Previously, Mr. Williams has held asset valuation and management positions in real estate and commodity trading, as well as management consulting positions with Arthur Andersen LLP and Electronic Data Systems. He received a B.A. from DePauw University and graduated with academic honors.
Lee A. Dayton, JR – Chief Administration Officer
Mr. Dayton brings more than 25 years of experience in investment banking, corporate development, and strategic partnerships. More recently, he served as Vice President of Corporate Development and Strategy at Albertsons Companies. There he conducted research and due diligence on customer-focused technologies to grow Albertsons non-brick and mortar businesses. Prior to that, Mr. Dayton worked in investment banking at UBS, Morgan Stanley and Citigroup, with a focus on retail, healthcare and industrials. He is an MBA graduate of the Kellogg School of Management and received his B.S. in electrical engineering from McCormick School of Engineering, both at Northwestern University.
Source: https://www.medicinemantechnologies.com/
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