Medicine Man to buy Starbuds dispensary chain for $31M

DENVER — Medicine Man Technologies Inc. (OTCQX: MDCL), a Denver-based cannabis firm, has entered into an agreement to buy five Starbuds dispensary locations for more than $31 million.

The Starbuds dispensaries included in the acquisition are located in Louisville, Longmont, Niwot, Pueblo and Commerce City. Medicine Man operates an existing Longmont dispensary, which opened earlier this year.

“Adding these five dispensaries to our Colorado operations will make our vertical supply strategy more efficient and help us grab additional market share through added retail capacity,” Medicine Man CEO Andy Williams said in a prepared statement. “The Starbuds dispensary operations are truly top-tier in terms of brand, revenue-per-location, and profit across the cannabis retail industry.” 

Under the acquisition agreement, Medicine Man’s $31,005,089 payment to Starbuds will consist of $15,502,544.50 in cash, the issuance of 2,601,098 shares of its common stock at a price of $2.98 per share, and a deferred cash payment of $7,751,272.25.

“I am incredibly excited to join the Medicine Man Technologies team,” Starbuds managing partner Brian Ruden said in a statement. “Together, we are building the most carefully considered cannabis company in the world, with a focus on consumer experience, branding, and profitability.”

DENVER — Medicine Man Technologies Inc. (OTCQX: MDCL), a Denver-based cannabis firm, has entered into an agreement to buy five Starbuds dispensary locations for more than $31 million.

The Starbuds dispensaries included in the acquisition are located in Louisville, Longmont, Niwot, Pueblo and Commerce City. Medicine Man operates an existing Longmont dispensary, which opened earlier this year.

“Adding these five dispensaries to our Colorado operations will make our vertical supply strategy more efficient and help us grab additional market share through added retail capacity,” Medicine Man CEO Andy Williams said in a prepared statement. “The Starbuds dispensary operations are truly top-tier in terms of brand, revenue-per-location, and profit across the cannabis retail industry.” 

Under the acquisition agreement, Medicine Man’s $31,005,089 payment to Starbuds will consist of $15,502,544.50 in cash, the issuance of 2,601,098 shares of its common stock at a price of $2.98 per share, and a deferred cash payment of $7,751,272.25.

“I am incredibly excited to join the Medicine Man Technologies team,” Starbuds managing partner Brian Ruden said in a statement. “Together, we are building the most carefully considered cannabis company in the world, with a focus on consumer experience, branding, and profitability.”