Schwazze Buying Denver's Urban Dispensary and Indoor Grow

Schwazze, a publicly traded marijuana ownership firm formerly known as Medicine Man Technologies, has agreed to buy another Colorado dispensary.

The Denver-based company just announced that it is acquiring Urban Health & Wellness, Inc., which is doing business as Urban Dispensary at 2675 West 38th Avenue.

Urban Health & Wellness also operates a 7,200-square-foot indoor growing warehouse. According to Schwazze, Urban Dispensary's cultivation will be included in the deal, which is worth a combined $3.2 million.

Urban Dispensary ownership, led by Patrick Johnson and Yun Youngdon, will receive $1.3 in cash and $1.9 in Schwazze stock. Founded in 2009 as a medical marijuana dispensary in the Sunnyside neighborhood, Urban Dispensary has since transitioned into recreational sales.

According to Schwazze, the store's location, right off the intersection of West 38th Avenue and Federal Boulevard, was a key factor in the acquisition.

"We look forward to the addition of the Urban group, including the strategically located Urban Dispensary and its Denver grow facility, to our expanding pipeline of assets in Colorado. Delivering our brands and our excellent customer service into new neighborhoods is a Schwazze hallmark as we continue to go deep in the state," Schwazze chief operating officer Nirup Krishnamurthy says in a statement about the deal.

Schwazze expects the deal to close in the second quarter of this year, after state and local licensing approval. The Urban team will remain part of the Schwazze family team, Krishnamurthy adds.

As part of its "aggressive expansion in Colorado," Schwazze will own 23 dispensaries and four growing operations throughout Colorado after the closing, according to the company. Earlier this year, Schwazze purchased Drift, Emerald Fields and Smokin Gun Apothecary dispensaries in three separate deals for a combined $36.5 million, as well as a 37,000-square-foot indoor growing facility in Denver for a reported $6.7 million.

Schwazze also agreed to purchase ten dispensaries, four cultivation operations and an infused-product facility in New Mexico for $42 million last December. All of the deals involve a combination of cash and stock holdings for the sellers.