Schwazze To Buy Two Emerald Fields Cannaboutique Dispensaries In Colorado For $29M In Cash And Stock

Schwazze SHWZ, previously operating as Medicine Man Technologies, announced Tuesday that it is acquiring MCG, LLC, the company behind Emerald Fields, which owns and operates two retail cannabis dispensaries located in Manitou Springs and Glendale, Colorado.

Under the terms of the agreement, the Denver-based company agreed to pay $29 million in cash and stock as a consideration for the acquisition.

In addition, 60% of the purchase price will be paid in cash with the remaining 40% paid in Schwazze common stock upon closing.

The acquisition, part of the company's retail expansion plan in Colorado and brings the total number of dispensaries including announced acquisitions to 22, is expected to close in the next 75 days.

Closing the deal is subject to the relevant conditions and covenants for this type of transaction, including, without limitation, obtaining Colorado Marijuana Enforcement Division and local licensing approval.

"Our team is delighted to add the Emerald Fields Cannaboutiques to our growing portfolio of dispensaries and are eager to welcome the team to Schwazze," Justin Dye, the company's CEO said. "Manitou Springs and Glendale are attractive locations and are valuable assets to our overall acquisitions plans as we continue to build out Colorado. Our team is excited to add another store brand to our house of brands." 

More news from Schwazze:

• Shwazze Q3 Revenue Grows 328.4% YoY To $31.8M; Updates Guidance Following Recent Acquisitions
• Schwazze To Buy Smoking Gun Cannabis Dispensary And Assets For $4M Cash And 1,000 Shares
• Schwazze To Buy Colorado Cultivation Grower Brow 2 For $6.7M In Cash

SHWZ Price Action

Schwazze's shares traded 9.45% lower at $2.0101 per share after the market close on Tuesday.

Photo: Courtesy of Tim Foster on Unsplash