Medicine Man Technologies just keeps growing. The publicly traded cannabis conglomerate's ravenous year continues, with the company recently announcing pending agreements to purchase two more well-known dispensary chains in Colorado, as well as one of the state's most recognizable edibles brands, Incredibles.
In a binding agreement announced September 16 (and alluded to much earlier), Medicine Man Technologies announced the upcoming purchase of Medically Correct, the parent company of Incredibles, Incredibles Extracts and several other infused-product companies. Incredibles founder Bob Eschino confirmed the sale with Westword earlier this week, adding that he will stay on to run the brand after the purchase. The deal does not include Incredibles brands located in other states with legal cannabis industries.
"This team has been strategically assembled for maximum impact — from my colleagues and myself in tactical plant-touching operations to our colleagues who bring vast experience in [mergers and acquisitions] and integration," Eschino said in a statement on the deal. "We are confident in this group's ability to fully take advantage of this first-of-its-kind opportunity."
Days before making the Incredibles announcement official, Medicine Man Technologies announced agreements to purchase Strawberry Fields, a southern Colorado dispensary chain with four locations, as well as Roots Rx, a chain of six cannabis stores in mountain communities such as Aspen, Eagle and Basalt.
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After its latest round of conspicuous consumption, Medicine Man Technologies has agreed to purchase 33 dispensaries throughout Colorado in the past nine months, with previous deals in place to buy Colorado Harvest Company, several Starbuds locations, Mesa Organics and Medicine Man, a chain of dispensaries owned by Medicine Man Technologies CEO Andy Williams. In the last three months, the company has also announced deals to acquire eight more marijuana businesses, including extractors Dabble Extracts, Purplebee's Extracts and cultivation Los Sueños Farms, as well as research and medical marijuana firm MedPharm Holdings and Colombian medical marijuana licensee Green Equity.
"The natural progression of the modern cannabis industry is consolidation, and our vision for the future of Medicine Man Technologies has always been to bring together a group of experienced cannabis industry pioneers and the leading brands they've created — and we're proud to finally tell the world about this years-in-the-making strategy coming to fruition," says Medicine Man Technologies CEO Williams.
The company's spending spree started after the Colorado Legislature passed a bill this past session allowing publicly traded businesses, such as Medicine Man Technologies, to hold ownership stakes in marijuana companies. But the new law, which Williams helped write, doesn't go into effect until November 1, so the deals announced thus far are still binding agreements and not yet official.
According to the company, many of these acquisitions were made possible after a $21 million investment by strategic partner Dye Capital. However, the majority of the businesses merging with Medicine Man Technologies so far are accepting much more stock than cash in their deals.