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.
In a binding agreement announced September 16 (and alluded to much earlier), Medicine Man Technologies announced the upcoming purchase of Medically Correct, the original parent company of Incredibles, Incredibles Extracts and several other infused-product companies. Although it was initially reported that the Incredibles brand within Colorado would be part of the deal's terms, both Medically Correct and Medicine Man Technologies now say that the Incredibles brand was not included in the agreement.
"Medicine Man Technologies has announced a binding term sheet to acquire Medically Correct, one of Colorado's largest edible manufacturers; who have been a licensed producer of Incredibles in Colorado, and creators of new brands Quiq and Nove. Medicine Man Technologies is not acquiring the rights to Incredibles with the pending acquisition of Medically Correct," Medicine Man Technologies says in a statement.
Medically Correct founder Bob Eschino confirmed the sale with Westword, adding that he will stay on as an executive after the purchase.
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"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 Medically Correct 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.
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.
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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.
Update: This article was updated to reflect new information concerning the terms of the purchase between Medicine Man Technologies and Medically Correct.
Update: Strawberry Fields terminated its acquisition agreement with Medicine Man Technologies in April 2020, according to both parties.