Medicine Man Denver announced it was terminating its deal with Schwazze and will look for new partners; it’s the second failed deal in as many months for Schwazze.
Medicine Man Denver Terminates Schwazze Deal
Industrial building rafters angle on bright green indoor field of legal weed crop
Full story continued below.
Advertisement
Medicine Man Denver is terminating its term sheet with Schwazze and has begun looking for new partners, the company announced on Monday. In a statement, Sally Vander Veer, CEO of Medicine Man, called the move “the right decision for both companies.”
It’s the second terminated acquisition agreement for Schwazze after Medically Correct pulled out of a deal with the company on July 27. Medically Correct President Bob Eschino said the company terminated the deal in order to shift focus toward brand expansion and development, according to a statement.
On July 9, Schwazze – which formerly operated as Medicine Man Technologies Inc – announced it had terminated a $12 million purchase of cannabis cultivator Los Sueños Farms and a $3.75 million acquisition of Dabble Extracts. Dispensary company High Country Supply and dispensary group Strawberry Fields each also terminated a $12.5 million sale and $31 million sales, respectively, earlier this year.
In June, Schwazze announced it had agreed to acquire 14 Star Buds locations throughout Colorado in a $118 million cash and stock deal. That deal has not yet closed.
In April, Schwazze completed acquisitions of Mesa Organics – which operates four southern Colorado dispensaries – and its Purplebee’s extraction and manufacturing business.
Schwazze CEO Justin Dye told Bezinga last month that the company had 11 deals in the works. In 2019 the company announced a $170 million merger and acquisition strategy. At that time, Dye served as chairman of the board and, through Dye Capital, committed $21 million to Schwazze’s strategy.
Get daily news insights in your inbox. Subscribe
End