Business
Schwazze, Formerly Operating as Medicine Man Technologies, Inc., Announces Star Buds Acquisition Progress and Strong Preliminary Unaudited Financial Results for the Third Quarter 2020
Schwazze, Formerly Operating as Medicine Man Technologies, Inc., Announces Star Buds Acquisition Progress and Strong Preliminary Unaudited Financial Results for the Third Quarter 2020.
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\"), today provided an acquisition update for Star Buds and the Company released strong preliminary unaudited financial results for its third quarter ended September 30, 2020.\n\nAs previously disclosed, Schwazze has entered into definitive agreements to purchase 14 Star Buds Colorado locations. Star Buds is one of the most recognized and successful retail cannabis operators in North America based on revenue-per-location and profit. The acquisitions include 13 retail operations located throughout the Colorado front-range and one cultivation facility in Denver. Based on the consolidated, unaudited 2019 results the Company received from Star Buds, these acquisitions collectively earned approximately $50M in revenue with a strong EBITDA margin. It is expected that the proforma revenue for the combined companies for 2020 will be approximately $90M. It is expected the combined companies will be cash flow positive after the completion of the acquisition.\n\nIn preparation for the anticipated closing of these acquisitions, Star Buds has approved the Company’s proof of funds in advance of closing. This acknowledgment enables both companies to begin preparing for a fourth quarter closing of the acquisitions.\n\n“Star Buds could not be more thrilled to have received satisfactory proof of funds from Schwazze,” Brian Ruden, Owner of Star Buds shared. “We look forward to not only closing our pending transactions but working together to build a great cannabis company.”\n\n“This is an exciting time for both Star Buds and Schwazze,” Justin Dye, Chairman and Chief Executive Officer of Schwazze said. “By bringing Star Buds to the Schwazze family, we are creating the next era of cannabis with a true focus on cannabis consumers. With Star Buds’ industry expertise and Schwazze’s best-in-class playbook, we will establish one of the best vertically integrated platforms in the industry. The Star Buds acquisitions position us to become a cannabis leader in Colorado.”\n\nFinally, in preparation of Schwazze’s third quarter 2020 earnings, the Company has released preliminary unaudited financial results. The Company anticipates revenue to be approximately $7.4M during the t...