Business
Schwazze Acquires Six Star Buds Dispensaries in Colorado
Schwazze Acquires Six Star Buds Dispensaries in Colorado.
About this update from Medicine Man Technologies Inc.
[{"type":"text","content":"\nSchwazze, formerly operating as Medicine Man Technologies Inc. (OTCQX: SHWZ) (\"Schwazze \" or “the Company\"), announces it has closed on the asset purchase of the first six of 13 Star Buds Colorado retail locations. Total consideration was approximately $37.1 million, consisting of $13.9 million in cash, $13.9 million in a seller’s note, and $9.3 million in Preferred Stock (at a price of $1,000 per share).\n\nStar Buds is one of the most recognized and successful retail cannabis operators in North America and is home to a wide selection of strains, concentrates, edibles, tinctures, and best-in-class customer service. The acquired dispensaries are located in Denver, Commerce City, Longmont, Niwot, Pueblo and Pueblo West and are projected to generate proforma revenue of approximately $24 million and EBITDA in the range of approximately 36% of revenue in 2020.\n\n“Star Buds is a premier cannabis industry brand and we are excited to be bringing the first six of 13 Colorado locations into the Schwazze family. Led by Brian Ruden, TJ Joudeh and their partners, Star Buds has built a respected, innovative and most trusted retail operation. I greatly admire its commitment to high quality products and its budtenders’ commitment to customers and cannabis expertise,” said Justin Dye, Chief Executive Officer of Schwazze.\n\nDye continued, “The addition of these six Star Buds dispensaries builds on our customer-centric focus, significantly expands our retail operations footprint, and enables us to reach positive cash flow beginning in January. With the projected closing of 13 total Star Buds locations, this expands Schwazze’s retail footprint to 17 total dispensary locations in the Denver metro and southern Colorado region, with aggressive expansion plans underway in other areas of the state, positioning Schwazze to be the premiere cannabis seed to sale company in Colorado.”\n\n“We are excited Colorado Star Buds locations are joining the Schwazze portfolio. This provides exciting opportunities for our employees, customers and the Colorado cannabis industry,” said Brian Ruden, Star Buds owner, operator, and Schwazze Board Member. “Schwazze’s acquisition of Star Buds Colorado locations, which will be completed in several separate transactions, furthers the Company’...