Schwazze purchases Remaining Colorado Starbuds Dispensaries for $72.3 Million

Schwazze Completes Acquisition of Five Remaining celebrity Buds Dispensaries in Colorado
  • Colorado Cannabis Leader’s Retail Footprint Now Expands to 17 places over the Denver Metro and Southern Region regarding the State
  • Pro Forma income for Schwazze and its own Two purchases (Mesa Organics and Star Buds) in 2020 is calculated at $95 Million

DENVER, March 03, 2021–(COMPANY WIRE)–Schwazze, previously running as Medicine Man Technologies Inc. (OTCQX: SHWZ) (“Schwazze” or “the Company”), today announced it had not already previously acquired that it has closed on the asset purchase of the five Star Buds dispensaries located in Colorado. The acquired dispensaries are located in Aurora (2), Denver, Louisville, and Westminster.

Total consideration was approximately $72.3 million, consisting of $27.5 million in cash, $26.9 million in sellers’ notes, and $17.9 million in Preferred Stock (at a price of $1,000 per share).

Star Buds is a recognized and successful retail cannabis operator in the United States and home to a wide selection of strains, concentrates, edibles, tinctures, and customer service that is best-in-class. Inclusive of the deal, Schwazze now has and runs all 13 Star Buds places in Colorado and its own retail impact now includes 17 dispensary places into the Denver metro and southern Colorado area.

For 2020, the 13 Star Buds shopping dispensaries generated total revenue of around $70 million and income that is net the range of approximately 40% of revenue. Together with Schwazze and the proforma revenue for 2020 Mesa Organics Ltd, acquired by Schwazze in April 2020, total 2020 proforma revenue is estimated to be approximately $95 million on a basis that is combined

The Company will likely be providing guidance that is 2021 its 2020 year-end conference call near the end of March.

We are excited to have completed our acquisition of Star Buds Colorado, a highly respected, innovative and trusted retail operation characterized by high quality products and its budtenders’ commitment to customers and cannabis expertise.

Justin Dye, Chief Executive Officer of Schwazze

Our intention now is to integrate these five locations, utilizing our integration that is proven playbook streamlines the M&A process and drives operational and financial synergies. We have been anticipating growing the celebrity Buds brand name through interior and methods that are external

Transaction Background

On June 8, 2020, Schwazze announced that it had reached definitive agreements to acquire all 13 Star Buds locations in Colorado, represented by 13 ownership that is different and agreements. On December 21, 2020, Schwazze announced the closing regarding the asset purchase of six celebrity Buds Colorado retail places, as well as on February 4, 2021, Schwazze announced the closing regarding the asset purchase of yet another two celebrity Buds Colorado retail places.

Schwazze could be the leading vertically built-in cannabis company that is holding Colorado with a portfolio consisting of top-tier licensed brands, spanning: cultivation, extraction, infused-product manufacturing, dispensary operations, consulting, and a nutrient line, all under one entity. In April 2020, Schwazze was the first publicly traded company to complete an acquisition following the legislation that is new of House Bill 19-1090 which allowed for general public business ownership of cannabis operations. The Company’s acquisition that is inaugural the purchase of Mesa Organics, a Southern Colorado dispensary chain with locations in Pueblo, Ordway, Rocky Ford, and Las Animas as well as Purplebee’s, a leading pure CO2 and ethanol extractor and manufacturer.

DelMorgan & Co. served as lead advisor that is financial experience of Schwazze’s funding for the deal, including sourcing the equity and financial obligation money and supplying fairness viewpoints to Schwazze regarding the the funding.

About Schwazze

Schwazze (OTCQX: SHWZ) is focused on building the leading vertically integrated cannabis company in Colorado. The company’s leadership group has expertise that is deep mainstream CPG, retail, and product development at Fortune 500 companies as well as in the cannabis sector. The organization has a culture that is high-performance a focus on analytical decision generating, supported by information. Customer-centric inspires that are thinking strategy and provides the foundation for the Company’s operational playbooks.

Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc.

Original press release

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Posted by NCV Newswire
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