“It grows…and it eats you alive.”
That is how the narrator of the trailer for the 1958 horror film The Blob described an alien life type that engulfs anything it touches, but he could possibly as nicely have been speaking about Medicine Man Technologies. The Denver-primarily based business enterprise conglomerate announced yet another acquisition this week, the sixth marijuana business that Medicine Man Technologies has agreed to obtain more than the final 3 months.
On August 12, Medicine Man Technologies announced plans to obtain Dabble Extracts, a Colorado Springs marijuana extraction business. According to the terms, the publicly-held Medicine Man Technologies will pay $three.75 million for Dabble: $750,000 in money and $three million worth of Medicine Man Technologies stock holdings.
“The proposed acquisition of Dabble Extracts will additional boost our item portfolio, as it will bring the knowledge and exclusive extraction capabilities vital to build higher-excellent cannabis concentrates in the type of shatter and wax items,” Medicine Man Technologies CEO Andy Williams says in a statement confirming the sale.
On the other hand, the obtain cannot officially go by means of till November 1 at the earliest, since that is when the language of Residence Bill 1090 goes into impact. Due to the fact Medicine Man Technologies is a publicly held business, it really is banned from getting into Colorado’s marijuana market below existing investment regulations, most of which will be replaced by the new law stemming from HB 1090.
The Dabble brand will stay intact, according to founder Josh Hindi, who will keep on to run the business as a branch of Medicine Man Technologies soon after the obtain goes by means of. As bigger providers like Medicine Man Technologies commence swallowing smaller sized brands like Dabble, Hindi expects modifications to the state’s pot market above and under the surface.
“It could be constructive and could be adverse. It could be constructive if you have got excellent operators in charge of various operations,” he says. “Some of the smaller sized guys who have been nonetheless acquiring away with cutting corners will get weeded out. But at the very same time, it utilized to be an market mostly driven by hippies who have been attempting to assistance men and women. Now it really is gradually getting taken more than by MBAs who are about the bottom dollar.”
With deeper pockets set to enter Colorado’s marijuana market sooner than later, Hindi says he wanted to choose a companion he liked prior to getting forced to choose one particular primarily based on monetary have to have. “Realistically, it was type of teaming up. But we wanted to choose our group as an alternative of getting forced into one particular,” he explains, adding that Medicine Man “fought and bled for this market for the final decade in Colorado. All of the other possibilities have been with men and women I did not know or investors from out of state.”
Dabble extracts will stay out there in the fifty to sixty dispensaries exactly where they are presently sold, Hindi says, despite the fact that he expects Dabble’s distribution to develop soon after the merger. “Dabble’s not going anyplace,” he adds. “I am not cutting and operating. I am right here to keep — and dabble.”
When the agreement is finalized, Dabble will join a substantial group of recognized pot brands. On June five, Medicine Man Technologies announced it had binding agreements to invest in Los Sueños Farms, an outside marijuana farm on 36 acres outdoors of Pueblo, as nicely as Mesa Organics Ltd, which owns a industrial cultivation, dispensary and extraction facility in Pueblo. Later that month, the business announced an agreement to invest in Colombian health-related marijuana licensee Green Equity. Prior to the summer time buying spree, Medicine Man Technologies also agreed to invest in cannabis pharmaceutical investigation firm MedPharm Holdings it is also set to obtain Medicine Man dispensaries, which Williams owns, upon HB 1090’s implementation.
Medicine Man Technologies presently reports also possessing ownership in a cannabis nutrient brand (Achievement Nutrients), a hydroponic shop and wholesale supplier (the Huge Tomato), a marijuana consulting business enterprise (Denver Consulting Group), and a publishing outlet for books and telephone apps (3 a Light).
Medicine Man keeps going…and expanding….