Movers and SHAKERS
Completes Star Buds Acquisition
Medicine Man Technologies, Inc. is now operating under its new trade name, Schwazze. Schwazze is executing its strategy to become a leading vertically integrated cannabis holding company with a portfolio consisting of top-tier licensed brands spanning cultivation, extraction, infused-product manufacturing, dispensary operations, consulting, and a nutrient line. Schwazze leadership includes Colorado cannabis leaders with proven expertise in product and business development as well as top-tier executives from Fortune 500 companies. As a leading platform for vertical integration, Schwazze is strengthening the operational efficiency of the cannabis industry in Colorado and beyond, promoting sustainable growth and increased access to capital, while delivering best-quality service and products to the end consumer. The corporate entity continues to be named Medicine Man Technologies, Inc.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Acquisition. Yesterday, Schwazze announced the acquisition of the remaining five Star Buds locations. The Company now owns and operates 17 retail dispensary locations in the Denver metro and southern Colorado region. Total cost for the final Star Buds locations was $72.3 million, comprised of $27.5 million in cash, $26.9 million in sellers' notes, and $17.9 million of preferred stock. In total, Star Buds cost $118.7 million, comprised of $44.9 million in cash, $44.3 million in sellers' notes, and $29.5 million of preferred stock.
Financing. On Monday, Schwazze announced a financing round of $34 million private placement with CRW Capital and an affiliate of Dye Capital as well as other unaffiliated investors. Schwazze also entered into $15 million of debt financing, $10 million funded immediately and $5 million to be funded as part of the closing of an identified acquisition ...
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