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Medicine Man Technologies To Operate 27 Dispensaries in Colorado

September 9, 2019 11:06 am
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Medicine Man Technologies To Operate 27 Dispensaries in Colorado

Medicine Man Technologies, Inc. (OTC:MDCL) announced Monday it has signed a binding term sheet to purchase four additional dispensaries in Colorado.

The new acquisition is part of the company’s Colorado retail expansion; Medicine Man it will run a total of 27 dispensaries in the state after the pending transactions close, the company said. 

For the new acquisition of four dispensaries, the company has agreed to pay $50.1 million, consisting of $25.05 million in cash; the issuance of 4.2 million common shares with a price of $2.98 per share; and a deferred cash payment of $12.52 million.  

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"These four dispensaries to be acquired culminate a tremendous run over the last week in which we announced the planned acquisitions of 22 dispensaries in Colorado," co-founder and CEO Andy Williams said in a statement.

"With an estimated 35% EBITDA margin, these retail stores are collectively expected to be some of the most profitable in our portfolio. We seek acquisition targets that meet strict operational and financial criteria, such as having a seasoned management team, commitment to high quality products and services, and strong revenue growth."

The new dispensaries are based in Denver, Pueblo West, Aurora and Mountain View, while the fifth location is under construction, according to Medicine Man. 

The stock was trading higher by 11.89% at $3.67 at the time of publication Monday. 

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