“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 may as effectively have been speaking about Medicine Man Technologies. The Denver-primarily based company conglomerate announced a further acquisition this week, the sixth marijuana business that Medicine Man Technologies has agreed to obtain more than the previous 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 special extraction capabilities needed to build higher-good quality 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 way of till November 1 at the earliest, for the reason that that is when the language of Residence Bill 1090 goes into impact. Simply because Medicine Man Technologies is a publicly held business, it really is banned from getting into Colorado’s marijuana sector beneath present 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 remain on to run the business as a branch of Medicine Man Technologies following the obtain goes by way of. As bigger organizations like Medicine Man Technologies begin swallowing smaller sized brands like Dabble, Hindi expects adjustments to the state’s pot sector above and under the surface.
“It could be constructive and could be adverse. It could be constructive if you have got good quality operators in charge of a number of operations,” he says. “Some of the smaller sized guys who have been nevertheless finding away with cutting corners will get weeded out. But at the exact same time, it made use of to be an sector mostly driven by hippies who have been attempting to support persons. 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 sector sooner than later, Hindi says he wanted to choose a companion he liked ahead of getting forced to choose a single primarily based on monetary require. “Realistically, it was sort of teaming up. But we wanted to choose our group rather of getting forced into a single,” he explains, adding that Medicine Man “fought and bled for this sector for the final decade in Colorado. All of the other possibilities have been with persons I did not know or investors from out of state.”
Dabble extracts will stay offered in the fifty to sixty dispensaries exactly where they are at present sold, Hindi says, even though he expects Dabble’s distribution to develop following the merger. “Dabble’s not going anyplace,” he adds. “I am not cutting and operating. I am right here to remain — and dabble.”
When the agreement is finalized, Dabble will join a significant group of identified pot brands. On June five, Medicine Man Technologies announced it had binding agreements to obtain Los Sueños Farms, an outside marijuana farm on 36 acres outdoors of Pueblo, as effectively as Mesa Organics Ltd, which owns a industrial cultivation, dispensary and extraction facility in Pueblo. Later that month, the business announced an agreement to obtain Colombian health-related marijuana licensee Green Equity. Prior to the summer time purchasing spree, Medicine Man Technologies also agreed to obtain cannabis pharmaceutical study firm MedPharm Holdings it is also set to obtain Medicine Man dispensaries, which Williams owns, upon HB 1090’s implementation.
Medicine Man Technologies at present reports also possessing ownership in a cannabis nutrient brand (Results Nutrients), a hydroponic retailer and wholesale supplier (The Large Tomato), a marijuana consulting company (Denver Consulting Group), and a publishing outlet for books and telephone apps (3 a Light).
Medicine Man keeps going…and increasing….