DENVER, Sept. 11, 2019 -- PRESS RELEASE -- Medicine Man Technologies, Inc. has announced that it has entered into a binding term sheet to acquire Strawberry Fields, an integrated cannabis operator located in Southern Colorado.
Medicine Man Technologies will purchase Strawberry Fields for $31 million, consisting of $14 million in cash and $17 million in common stock, satisfied by the issuance of 5,704,698 shares of its common stock priced at $2.98 per share. The purchase price may be subject to adjustment, which will be detailed in the long form agreement entered into among the parties.
"The integration of Strawberry Fields into our family of Colorado pioneers will be impactful," said Andy Williams, co-founder and chief executive officer of Medicine Man Technologies. "This transaction will provide our company with low-cost cultivation assets located in Pueblo, a growing manufacturing facility and branded products. In addition, we will be acquiring four retail locations in Western and Southern Colorado, including a high-yielding store that is a leader in that part of the state. Adding Strawberry Fields to our portfolio will strengthen our strategy to become the leading integrated cannabis operator of Colorado. Our broad and deep family of entrepreneurial pioneers with a shared vision and culture represent a unique and well-positioned asset for investors who truly understand the industry."
"We are thrilled to partner with Medicine Man Technologies and its growing family of brands and dispensaries," said Mike Kwesell, co-founder and partner of Strawberry Fields. "Colorado is the most competitive cannabis market in the world, and to know we will have the support from other successful business teams and efficient operators all pulling in the same direction is quite significant. We have been working with Medicine Man Technologies throughout the years and they have lived up to their reputation for being a first mover and strategic leader. Consequently, making this deal was easier in many respects because of the positive business experiences both sides have had with one another over the years. By operating under a single unified umbrella, we can all recognize business efficiencies and synergies to help create the leading cannabis company in the Rocky Mountain region."
The terms of the transaction can also be referenced in the company's 8-K, which outlines the closing conditions that are dependent upon the satisfaction or mutual waiver of certain stipulations.
The company recently announced a series of binding term sheets to acquire 34 retail dispensaries, including four from Medicine Man, four from Purplebees, five from Starbuds, three from Colorado Harvest Company, four from a group of dispensaries, six from Roots Rx, four from another group of retail centers, and four from Strawberry Fields in today's announcement.