Medicine Man Technologies Expands its Retail Capabilities with the Planned Acquisition of Roots Rx, a Hugely Trustworthy Operator with Six Dispensaries and Cultivation Facilities
– Roots Rx is one particular of the leading dispensary brands inside Colorado, with higher high-quality cannabis, ease of ordering options, knowledgeable budtenders, and a special loyalty plan
– 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 massive outside cultivation facility in Aspen that is recognized for its higher-high-quality 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 recent binding term sheet to obtain Roots Rx, a cannabis operator with six dispensaries positioned in the ski and mountain towns of Colorado. The Enterprise will also obtain Roots Rx’s outside cultivation facilities positioned outdoors of Aspen. This most recent announcement comes on the heels of term sheets announced earlier this week to obtain a quantity of dispensaries, which includes retail areas utilizing the Starbuds and Colorado Harvest Enterprise brands and a series of independent dispensaries, which will bring the Company’s total dispensary count to 23 upon the thriving closing of all the pending acquisitions.
Beneath the terms of the transaction, Medicine Man Technologies will obtain 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 popular 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 create 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 particularly excited to obtain retail presence beyond the Denver metro region and into the mountainous and resort regions of the state by way of 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 ideal and brightest pioneers of the market. We are extremely pleased to welcome onto our team Robert Holmes and Steven Miller, two savvy and sophisticated operators, as properly as their thriving develop and retail retailers. We really feel that the mixture of our companies will outcome in operational synergies.
“We began our household of dispensaries with the very same entrepreneurial spirit that Andy Williams and his group have employed to construct Medicine Man Technologies into a major regional cannabis operator,” commented Robert Holmes, Chief Executive Officer of Roots Rx. “Our buyers will advantage from the expanded solution and brand offerings much more readily obtainable to us below the Medicine Man Technologies umbrella following our transaction closings. To be capable to join the list of market pioneers that will be involved at Medicine Man Technologies is a great 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, which includes regulatory approval.
For much more information and facts 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 swiftly increasing provider of cannabis consulting solutions, nutrients and supplies. The Company’s client portfolio consists of active and previous customers in 20 states and 7 nations all through the cannabis market. The Enterprise has entered into agreements to turn into one particular of the biggest vertically integrated seed-to-sale operators in the worldwide cannabis market. At the moment contemplated transactions topic to term sheets, if closed, will allow Medicine Man Technologies to give cultivation, extraction, distribution and retail pharma-grade solutions internationally. The Company’s intellectual house would consist of the “Three A Light” methodology for cannabis cultivation upon closing of pending acquisition candidate MedPharm’s GMP-certified facility, which has the initial cannabis study license to conduct clinical trials in the United States. Management consists of decades of cannabis encounter, a special mixture of initial movers in industrial cannabis and established Fortune 500 corporate executives.
Original press release
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