Medicine Man Technologies Expands its Retail Capabilities with the Planned Acquisition of Roots Rx, a Extremely Respected Operator with Six Dispensaries and Cultivation Facilities
– Roots Rx is one particular of the leading dispensary brands inside Colorado, with higher excellent cannabis, ease of ordering attributes, knowledgeable budtenders, and a distinctive loyalty system
– This transaction will add an extra six dispensaries to the Company’s retail footprint, bringing the total quantity of dispensaries to 23 upon closing of all pending acquisitions
– Roots Rx operates a big outside cultivation facility in Aspen that is recognized for its higher-excellent solutions and biomass
DENVER, Sept. six, 2019 /PRNewswire/ — Medicine Man Technologies, Inc. (OTCQX: MDCL) (“Medicine Man Technologies” or the “Company”), is pleased to announce its most current binding term sheet to obtain Roots Rx, a cannabis operator with six dispensaries positioned in the ski and mountain towns of Colorado. The Business will also obtain Roots Rx’s outside cultivation facilities positioned outdoors of Aspen. This most current announcement comes on the heels of term sheets announced earlier this week to obtain a quantity of dispensaries, like retail areas making use of the Starbuds and Colorado Harvest Business brands and a series of independent dispensaries, which will bring the Company’s total dispensary count to 23 upon the effective closing of all the pending acquisitions.
Beneath the terms of the transaction, Medicine Man Technologies will buy Roots Rx for a total cost of $15 million, which will consist of $7.five million in money, the issuance of 1,779,661 shares of its prevalent stock at a cost of $two.95 per share, and a deferred money payment of $two.25 million to be produced a year following the initial closing date. Primarily based on year-to-date benefits, management expects these six dispensaries to produce over $12 million in income in 2019 and in excess of $two.1 million in EBITDA.
We’ve been regionally focused on plans to raise our retail capacity and expand our presence, and this move is constant with our intention to vertically integrate our develop, manufacturing, and state-wide retail facilities. We are in particular excited to acquire retail presence beyond the Denver metro region and into the mountainous and resort regions of the state via the Roots Rx areas.
Andy Williams, Co-Founder and Chief Executive Officer of Medicine Man Technologies
Medicine Man Technologies has constructed its foundation on aggregating a brain trust of the most effective and brightest pioneers of the market. We are incredibly pleased to welcome onto our team Robert Holmes and Steven Miller, two savvy and sophisticated operators, as properly as their effective develop and retail shops. We really feel that the mixture of our firms will outcome in operational synergies.
“We began our household of dispensaries with the similar entrepreneurial spirit that Andy Williams and his group have employed to make Medicine Man Technologies into a top regional cannabis operator,” commented Robert Holmes, Chief Executive Officer of Roots Rx. “Our buyers will advantage from the expanded item and brand offerings additional readily readily available to us beneath the Medicine Man Technologies umbrella following our transaction closings. To be in a position to join the list of market pioneers that will be involved at Medicine Man Technologies is a superb chance for all of us at Roots Rx. We appear forward to beginning this journey collectively.”
The six dispensaries that will be acquired in this transaction are positioned in Aspen, Basalt, Eagle-Vail, Edwards, Leadville, and Gunnison.
The terms of the transaction can also be referenced in the Company’s eight-K, which outlines the closing situations and are conditioned upon the satisfaction or mutual waiver of particular situations, like regulatory approval.
For additional details about Medicine Man Technologies, please visit https://www.medicinemantechnologies.com.
About Medicine Man Technologies
Denver, Colorado-primarily based Medicine Man Technologies (OTCQX: MDCL) is a quickly increasing provider of cannabis consulting solutions, nutrients and supplies. The Company’s client portfolio involves active and previous clientele in 20 states and 7 nations all through the cannabis market. The Business has entered into agreements to turn into one particular of the biggest vertically integrated seed-to-sale operators in the international cannabis market. At the moment contemplated transactions topic to term sheets, if closed, will allow Medicine Man Technologies to offer you cultivation, extraction, distribution and retail pharma-grade solutions internationally. The Company’s intellectual home would involve the “Three A Light” methodology for cannabis cultivation upon closing of pending acquisition candidate MedPharm’s GMP-certified facility, which has the initially cannabis analysis license to conduct clinical trials in the United States. Management involves decades of cannabis practical experience, a distinctive mixture of initially movers in industrial cannabis and verified Fortune 500 corporate executives.
Original press release
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