Starbuds, one particular of Colorado’s biggest dispensary chains, has agreed to sell a handful of retailers to a name that is becoming increasingly popular in cannabis-business acquisition news: Medicine Man Technologies.
The deal among the two parties, announced September three, has Starbuds promoting 5 retailers in Louisville, Longmont, Pueblo, Niwot and Commerce City to the cannabis small business conglomerate for just more than $31 million in money and Medicine Man Technologies stock shares.
But the news does not finish there. These days, September four, Medicine Man Technologies announced it has agreed to purchase Colorado Harvest Organization, a chain of 3 dispensaries in Denver and Aurora, for $12.five million in money and stock.
That is eight dispensaries in two days and ten various providers in 3 months, all bought by Medicine Man Technologies.
The company’s spending spree began just after the Colorado Legislature passed a bill this previous session permitting publicly traded firms, such as Medicine Man Technologies, to hold ownership stakes in marijuana providers. The new law does not go into impact till November, even though, so the offers announced hence far are nevertheless binding agreements and not but official.
According to Medicine Man Technologies, the founders of its newest acquisitions — Starbuds’ Brian Ruden and Colorado Harvest Company’s Tim Cullen — will each join the new ownership group in executive positions. It really is unknown no matter if the dispensaries will transition to the Medicine Man dispensary brand, a chain of Colorado retailers owned by Medicine Man Technologies CEO Andy Williams.
Colorado Harvest Organization has 3 dispensaries in the metro region.
Final year, Cullen spoke with Westword about the challenges of owning a federally illegal marijuana small business and the lack of tax breaks that come with it he even sold a dispensary license in 2018 to Starbuds (an Aurora place that wasn’t incorporated in the Medicine Man deal) to aid spend off a tax bill. As consolidation continues in the pot business, Cullen chose Medicine Man Technologies as his landing spot.
“Following the passage of this law, the time was in no way a lot more appropriate for us to join the outstanding group at Medicine Man Technologies, who is now no cost to invest in the business, provided the synergies involved. Their expanding group of Colorado cannabis pioneers is extremely impressive, and we are delighted to be aligned with their joint efforts, all quickly to be below one particular roof,” Cullen says in a statement on the deal. “Moreover, the management group at Medicine Man Technologies is extremely achieved, and they are executing effectively on their strategy to bring economic discipline and a clear technique in their efforts to develop the region’s premier cannabis corporation. We are delighted to join them in this subsequent leg of development.”
Starbuds nevertheless owns six dispensaries in Colorado, with a further in Denver on the way, as nicely as many a lot more retailers in Oklahoma, Maryland and Jamaica. But Ruden, who helped push the chain from a handful of storefronts in Colorado to more than a dozen nationwide, will join the Medicine Man Technologies executive group.
“Brian and his group have constructed an enviable brand and a most thriving operation recognized in the business for its award-winning strains, for its higher profitability, and for obtaining the most thriving buyer loyalty system about,” Williams says in a statement. “We happily welcome them and these 5 areas into the Medicine Man Technologies family members.”
In addition to these dispensaries, more than the final 3 months Medicine Man Technologies has announced offers to obtain eight a lot more marijuana firms, which includes Colorado marijuana brands such as Dabble Extracts, Purplebee’s Extracts, Los Sueños Farms and a but-to-be-named edibles manufacturer, as nicely as study and health-related marijuana providers MedPharm Holdings and Colombian health-related marijuana licensee Green Equity.