Columbia Care Inc., a New York-based listed marijuana company, has completed a transaction to buy Medicinmand pharmacies in Colorado.
The acquisition package, announced in June, is valued at $ 42 million, according to the two parties, with $ 8.4 million paid in cash and the remaining $ 33.6 million in Columbia Care shares; 2021 performance milestones may increase compensation.
Medicine Man, which has a network of four stores in Aurora, Denver, Longmont and Thornton, as well as a 32,000 square foot growing business in the Denver area, was founded in 2009 as a Denver medical marijuana dispensary by the brother-sister trio of Andy Williams, Pete Williams and Sally Vander Veer.
“This marks the next step in the development of Medicine Man, from an ambitious family-run business to part of a best-in-class operation,” Vander Veer said in a statement. “Our focus now is on carrying out their vision and bringing as much value as possible to the Columbia Care operation.”
According to Vander Veer, she will continue in the role of Medicine Man CEO for at least a year, and Medicine Man employees will be retained. Medicine Man’s branding remains in the chain’s pharmacies.
Medicine Man originally accepted a takeover bid from Schwazze (formerly Medicine Man Technologies), a cannabis conglomerate co-founded by Andy Williams, but terminated that agreement in August 2020. Williams subsequently said he supported the Columbia Care acquisition, while Vander Veer called the termination of the Schwazze agreement a “blessing in disguise,” but declined to provide details on how that agreement fell apart.
Medicine Man is the second Colorado dispensary chain to come under the Columbia Care umbrella. Last year, Columbia Care acquired Green Solution, one of Colorado’s largest pharmacy chains and vertically integrated pottery companies, for a $ 140 million deal. Columbia Care now owns 25 marijuana stores in Colorado and about seventy dispensaries across thirteen states.
“As the second largest cannabis market in the world, Colorado has become a global time for adult use programs and continues to show strong organic growth,” Columbia Care CEO Nicholas Vita said in a statement. “The acquisition of Medicine Man strengthens our position as a leader in the state by combining with a recognized operator who has been a consistent outperformer in the Colorado market since its inception.”
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