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Medicine Man Technologies To Buy Edible Maker Canyon LLC For $5.3M

September 12, 2019 9:33 am
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Medicine Man Technologies To Buy Edible Maker Canyon LLC For $5.3M

Medicine Man Technologies, Inc. (OTC:MDCL) said Thursday it has signed a binding term sheet to acquire Canyon LLC,  a Colorado producer of premium-infused edibles.

The purchase price is $5.13 million in cash and common stock that will be fixed in the long form agreement, according to Medicine Man. The amount payable in cash wouldn’t exceed $2.565 million, and the shares will have a value of $3.07 per share.

"Canyon has been on our radar for several years given its strong following and high-quality manufacturing and extraction methods. Its proprietary process using CO2 to extract cannabis oil from plant materials yields flavorful products. From hard candies, capsules and micro-dosed gummies to its cannabis-infused beverages, the unique products derived from its cannabis oil have gained a deserving reputation and garnered a tremendous customer base," Medicine Man CEO and co-founder Andy Williams said in a statement. 

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

Bigger corporate competitors are seeking to enter the Colorado, said Morgan Iwersen, co-owner and CEO of Canyon LLC. 

Morgan Iwersen, Founder, Co-Owner, and CEO of Canyon LLC also commented on the acquisition.  

"We felt it was time to join the Medicine Man Technologies family to help build a stronger unified company that can remain competitive with these larger corporations but still maintain the authenticity of our Colorado roots."

Canyon is expected to deliver gross revenue of $3.3 million this year, according to Thursday's release. 

Medicine Man shares were up 2.37% at $3.89 at the close Wednesday. 

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Photo courtesy of Medicine Man. 

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