Cannabis cultivator Medicine Man Denver is terminating a term sheet agreement with Schwazze SHWZ. The split will be effective as of Aug. 20.
Denver-based Schwazze previously did business as Medicine Man Technologies Inc. before rebranding in April.
What To Know: "The recent decision to terminate our agreement with Schwazze is the right decision for both companies," said Sally Vander Veer, CEO of Medicine Man Denver. "We look forward to continuing to build Medicine Man Denver's footprint within our state in order to serve our customers, employees, and communities in which we work."
Medicine Man Denver has yet to confirm a new production partner.
According to Medicine Man co-founder Andy Williams, Medicine Man will begin a new search for what it calls "a quality partner" that has the desire to have a presence in the Colorado market.
"We wish them best as we each move forward with our respective businesses,” Schwazze said in a prepared statement.
Why It's Important: Schwazze CEO Justin Dye has spoken to Benzinga at length about the company's $170 million M&A strategy. And while several acquisitions are still in the works, including a pending deal with Star Buds, Medicine Man Denver marks the sixth purchase agreement that has fallen through under Dye's watch.
Medically Correct, also based in Denver, terminated an acquisition agreement with Schwazze just a few weeks ago.
“Our decision to terminate this acquisition comes as we shift our focus toward the development and national expansion of our new brands Quiq, Nove and Clear Creek Extracts,” Medically Correct president Bob Eschino said at the time.
Medically Correct, founded in 2010, owns a variety of THC and CBD brands, including a line of chocolates gummies and mints, among others.
Schwazze also canceled a $12 million purchase of cannabis cultivator Los Sueños Farms, as well as a $3.75 million acquisition of Dabble Extracts. Before that, dispensary company High Country Supply rescinded a $12.5 million sale to Schwazze.
Dispensary group Strawberry Fields also terminated its $31 million sale to Schwazze on April 20 — the same day Medicine Man Technologies confirmed the name change.
Meet the biggest cannabis industry players and make deals that will push the industry forward.
Featuring live company presentations, insider panels, and unmatched access to networking, the Benzinga Cannabis Capital Conference is where cannabis executives and entrepreneurs meet.
Join us September 13-14, 2022 at The Palmer House in Chicago, IL.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.