Movers and SHAKERS
Half A Hit Is Better Than No Hit At All: Closes On Six Star Buds Locations
Medicine Man Technologies, Inc. is now operating under its new trade name, Schwazze. Schwazze is executing its strategy to become a leading vertically integrated cannabis holding company with a portfolio consisting of top-tier licensed brands spanning cultivation, extraction, infused-product manufacturing, dispensary operations, consulting, and a nutrient line. Schwazze leadership includes Colorado cannabis leaders with proven expertise in product and business development as well as top-tier executives from Fortune 500 companies. As a leading platform for vertical integration, Schwazze is strengthening the operational efficiency of the cannabis industry in Colorado and beyond, promoting sustainable growth and increased access to capital, while delivering best-quality service and products to the end consumer. The corporate entity continues to be named Medicine Man Technologies, Inc.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Star Buds Acquisition. Schwazze announced Monday morning it had closed on the acquisition of six Star Buds retail locations and expects to acquire the remaining seven locations during the first quarter. Although disappointed all 13 were not closed, we view yesterday's announcement as the initial step in the process and believe the Company will acquire the remaining locations promptly.
Numbers. The six locations are being acquired for $37.1 million, consisting of $13.9 million in cash, $13.9 million in a seller's note and $9.3 million of preferred stock. Schwazze is raising the $13.9 million of cash from Dye Capital through a $5 million convertible note at 12% and $9.45 million of 8% preferred stock. Management remains confident in its ability to raise the remaining $81 million ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.