The acquisition follows another high-profile purchase the company made earlier this month
Medicine Man Technologies continues to add more entities to its portfolio. The cannabis company has announced that it has entered into a binding agreement to purchase an unidentified Colorado-based company that manufactures cannabis-infused extracts, wellness products and edibles, with the deal expected to be finalized sometime during the first half of next year. Earlier this month, the company also purchased Colorado-based Dabble Extracts, a cannabis extraction company, for $7.5 million.
The latest acquisition will see Medicine Man offer shares of common stock and cash worth about $17.25 million – 1.25 times the anticipated annual revenue of $13.8 million. The deal still has to be approved by regulators, but this isn’t expected to be an issue.
Andy Williams, co-founder and CEO of Medicine Man, says in a press release from yesterday, “This agreement will bring the manufacturer of numerous award-winning cannabis edibles and extracts under our umbrella, with existing distribution in close to 600 Colorado-based dispensaries. These manufacturers are the creators of branded products that are market segment leaders and have won numerous awards in a multitude of categories and will further establish our leadership in Colorado. Reaching critical economies of scale, while offering depth and breadth in all cannabis product segments, is incredibly important for our business model. This acquisition, along with the others currently pending, will undoubtedly get us closer to building a vertically integrated, leading operator in Colorado. We are excited about the numerous cross-selling opportunities. This transaction will allow our products to access the massive retail reach this cannabis manufacturer already enjoys. It is our laser-focus and commitment to becoming the region’s largest producer and supplier of cannabis and cannabis products. With each acquisition, we add key industry pioneers with a similar vision and vital experience that will ultimately prove compelling to our success.”