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.