Starbuds, a single of Colorado’s biggest dispensary chains, has agreed to sell a handful of retailers to a name that is becoming increasingly widespread in cannabis-business acquisition news: Medicine Man Technologies.
The deal amongst the two parties, announced September three, has Starbuds promoting 5 retailers in Louisville, Longmont, Pueblo, Niwot and Commerce City to the cannabis organization conglomerate for just more than $31 million in money and Medicine Man Technologies stock shares.
But the news does not finish there. Right now, September four, Medicine Man Technologies announced it has agreed to invest in Colorado Harvest Enterprise, a chain of 3 dispensaries in Denver and Aurora, for $12.five million in money and stock.
That is eight dispensaries in two days and ten various businesses in 3 months, all bought by Medicine Man Technologies.
The company’s spending spree began following the Colorado Legislature passed a bill this previous session permitting publicly traded organizations, such as Medicine Man Technologies, to hold ownership stakes in marijuana businesses. The new law does not go into impact till November, even though, so the offers announced therefore far are nonetheless binding agreements and not however official.
According to Medicine Man Technologies, the founders of its most recent acquisitions — Starbuds’ Brian Ruden and Colorado Harvest Company’s Tim Cullen — will each join the new ownership group in executive positions. It is unknown irrespective of whether the dispensaries will transition to the Medicine Man dispensary brand, a chain of Colorado retailers owned by Medicine Man Technologies CEO Andy Williams.
Colorado Harvest Enterprise has 3 dispensaries in the metro location.
Final year, Cullen spoke with Westword about the challenges of owning a federally illegal marijuana organization and the lack of tax breaks that come with it he even sold a dispensary license in 2018 to Starbuds (an Aurora place that wasn’t incorporated in the Medicine Man deal) to assistance spend off a tax bill. As consolidation continues in the pot business, Cullen chose Medicine Man Technologies as his landing spot.
“Following the passage of this law, the time was by no means extra proper for us to join the outstanding group at Medicine Man Technologies, who is now totally free to invest in the business, offered the synergies involved. Their developing group of Colorado cannabis pioneers is quite impressive, and we are pleased to be aligned with their joint efforts, all quickly to be beneath a single roof,” Cullen says in a statement on the deal. “Moreover, the management group at Medicine Man Technologies is extremely achieved, and they are executing effectively on their program to bring monetary discipline and a clear method in their efforts to develop the region’s premier cannabis organization. We are delighted to join them in this subsequent leg of development.”
Starbuds nonetheless owns six dispensaries in Colorado, with a different in Denver on the way, as effectively as numerous extra retailers in Oklahoma, Maryland and Jamaica. But Ruden, who helped push the chain from a couple of storefronts in Colorado to more than a dozen nationwide, will join the Medicine Man Technologies executive group.
“Brian and his group have constructed an enviable brand and a most thriving operation recognized in the business for its award-winning strains, for its higher profitability, and for obtaining the most thriving buyer loyalty plan about,” Williams says in a statement. “We happily welcome them and these 5 places into the Medicine Man Technologies household.”
In addition to these dispensaries, more than the final 3 months Medicine Man Technologies has announced offers to obtain eight extra marijuana organizations, which includes Colorado marijuana brands such as Dabble Extracts, Purplebee’s Extracts, Los Sueños Farms and a however-to-be-named edibles manufacturer, as effectively as investigation and healthcare marijuana businesses MedPharm Holdings and Colombian healthcare marijuana licensee Green Equity.