Denver-based Schwazze, formally Medicine Man Technologies Inc., is set to acquire 14 Star Buds locations throughout Colorado in a $118 million cash and stock deal. Four of the dispensaries are located in Denver – along with a cultivation site in the city – while two are in Aurora, and one each in Commerce City, Longmont, Louisville, Niwot, Pueblo, Pueblo West, and Westminster.
The company said the 14 locations collectively earned approximately $50 million in revenue with strong earnings before interest, taxes, depreciation and amortization (EBITDA) margin. Star Buds was established in 2013 and in addition to Colorado, operates one dispensary in Baltimore, Maryland and six throughout Oklahoma.
Brian Ruden, Star Buds owner, operator, and Schwazze Board Member said Schawzze’s strategy “provides exciting opportunities for our employees, customers and the industry.”
“These transactions further Schwazze’s vision to create the most admired cannabis company in the world while remaining focused on customer experience, trusted branding, and strong profitability.” – Ruden in a statement
In April, in addition to its rebranding from Medicine Man to Schwazze, the company announced it had completed its acquisition of Mesa Organics and its Purplebee’s business – which marked the first since its entrance into the Colorado market. Mesa operates four southern Colorado dispensaries, while Purplebee’s is a cannabis extraction and manufacturing company. That deal was worth about $2.6 million in cash and $2.6 million in common stock shares.
The deal is expected to close in the third quarter of this year and the change of ownership has already been filed with state cannabis regulators.