Marijuana

Medicine Man Technologies Continues Acquisition Spree

Medicine Man Technologies has been on a spending spree in June.
Medicine Man Technologies has been on a spending spree in June. Scott Lentz
Medicine Man Technologies, a publicly traded marijuana business conglomerate based in Denver, just keeps expanding. A week after the company announced its plans to purchase two commercial marijuana operations in Colorado, it revealed an agreement to buy Colombian marijuana producer Green Equity.

When Westword interviewed Medicine Man CEO Andy Williams about the company's recent deals in Colorado, he was in Colombia; at the time, he mentioned plans to purchase a third marijuana company, but couldn't drop the name.

But now he can.

"This pending acquisition secures our strategy for international growth, beginning with our entry into Colombia," Williams says in a statement announcing the new agreement. "We have proven the success of our rollout in Colorado and have developed a world-class reputation that now is ripe with opportunities."

Although recreational marijuana sales are still illegal in Colombia, the plant is legal for certain medical uses in that country, and personal cultivation and consumption are decriminalized. By purchasing Green Equity, which holds Colombian business licenses for marijuana cultivation, manufacturing, extraction, exportation and research, Medicine Man Technologies will further its plans to create a global footprint as support for marijuana legalization grows.

"We believe that our early entry into the market will allow us to further our goal of becoming a major global player in the cannabis industry and create tremendous value for our shareholders," Williams adds.

According to the purchase announcement, Medicine Man Technologies will pay $5.4 million for Green Equity, with $450,000 in cash and 1,292,427 shares of common stock at $3.83 per share.

On June 5, Medicine Man Technologies announced it had binding agreements to buy Los Sueños Farms, an outdoor marijuana farm on 36 acres outside of Pueblo, as well as Mesa Organics Ltd, which owns a commercial cultivation, dispensary and extraction facility in Pueblo; the company also has an agreement in place to buy cannabis pharmaceutical research firm MedPharm Holdings.

Those sales can't take place until the language of House Bill 1090 goes into effect, however, because Medicine Man Technologies is a publicly held company, and such entities are still banned from entering Colorado's marijuana industry under soon-to-be-obsolete regulations. The new law takes hold in Colorado on November 1; Medicine Man plans to complete its purchase of Los Sueños and Mesa Organics by February 1, 2020.

Medicine Man Technologies also currently reports having ownership in a cannabis nutrient brand (Success Nutrients), a hydroponic store and wholesale supplier (the Big Tomato), a marijuana consulting business (Denver Consulting Group), and a publishing outlet for books and phone apps (Three a Light), while Williams is an owner of Medicine Man dispensaries in Colorado.
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Thomas Mitchell has written about all things cannabis for Westword since 2014, covering sports, real estate and general news along the way for publications such as the Arizona Republic, Inman and Fox Sports. He's currently the cannabis editor for westword.com.
Contact: Thomas Mitchell