Market Overview

Medicine Man Technologies To Acquire 5 Starbuds Dispensaries In $31M Deal

Share:
Medicine Man Technologies To Acquire 5 Starbuds Dispensaries In $31M Deal

Medicine Man Technologies, Inc. (OTC: MDCL) said Tuesday it has signed a binding term sheet to purchase five Starbuds dispensaries in Colorado. 

Per the agreement, the company will acquire five dispensaries for $31 million, consisting of $15 million in cash, the issuance of 2.6 million common shares at $2.98 per share and a deferred cash payment of $7.75 million.

Medicine Man projects that the dispensaries will achieve more than $19 million in revenue and north of $5.6 million in EBITDA this year.

The dispensaries are located in Louisville, Longmont, Pueblo, Niwot and Commerce City.

Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.

"The acquisition of these dispensaries operating under the prestigious Starbuds brand will truly be a transformational corporate event for us," Andy Williams, co-Founder and CEO of Medicine Man, said in a statement.  

"Adding these five dispensaries to our Colorado operations will make our vertical supply strategy more efficient and help us grab additional market share through added retail capacity. The Starbuds dispensary operations are truly top-tier in terms of brand, revenue-per-location and profit across the cannabis retail industry."

Medicine Man is a company that offers cannabis consulting services, nutrients and supplies across 20 states and seven countries.

The stock was trading higher by 1.87% at $2.94 at the time of publication Tuesday. 

Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter

Photo courtesy of Medicine Man. 

Posted-In: marijuana pot Starbuds weedCannabis M&A News Markets Best of Benzinga

 

Related Articles (MDCL)

View Comments and Join the Discussion!

Cannabis Movers

Sign up for our secret cannabis newsletter!
Never miss out on the breaking news in the Cannabis Industry!

Las Vegas Casinos Facing Sports Betting Competition In The Garden State

Hurricane Dorian's Track Shift Lowers Loss Estimates For Insurers