Schwazze, a Denver-based marijuana-listed marijuana-owned company, has just agreed to buy three Colorado dispensers over a two-day period.
In announcements issued Nov. 15 and Nov. 16, Schwazze outlined acquisition agreements for Smokin Gun Apothecary and Emerald Fields dispensaries. Both agreements are awaiting approval from Colorado Marijuana Enforcement Division (MED) and is expected to close within 75 days.
Schwazze will pay $ 4 million in cash and 100,000 shares in exchange for Smokin Gun and the pharmacy’s affiliated LLCs, according to the announcement.
A western-themed pottery shop next to Shotgun Willie’s strip club in Glendale, Smokin Gun was co-founded in 2016 by Deborah Dunafon, who also owns Shotgun Willie’s. The pharmacy had big plans for social consumption of pots throughout its tenure, but hopes of hospitality were never realized. Shortly after Smokin Gun secured a pot consumption permit from MED, and Glendale City Council approved dispensary tasting rooms, the COVID-19 pandemic hit, and the pharmacy’s consumption permit was withdrawn.
Smokin Gun ownership declined to comment on the sale.
Glendale, a small town surrounded by Denver, has only five pharmacies, including Smokin Gun and Emerald Fields, which are essentially neighbors.
Another future member of the Schwazze family, Emerald Fields, was founded in 2015 and currently operates two recreational pharmacies: one in Glendale and another in Manitou Springs. The company, which is registered with MED under MCG LLC, agreed to a $ 29 million package from Schwazze for the two stores. According to the announcement, the deal requires about 60 percent ($ 17.4 million) to be paid in cash, while the remaining amount is paid in Schwazze shares.
Manitou Springs has a population of just over 5,000, but the city is less than fifteen minutes from Colorado Springs, where recreational marijuana sales are prohibited. According to the city’s former mayor, over half of the tax revenue in Manitou Springs in 2019 came from the sale of recreational pots.
“Our team is excited to add Emerald Fields Cannaboutiques to our growing portfolio of dispensaries and is eager to welcome the team to Schwazze. Manitou Springs and Glendale are attractive locations and are valuable assets for our overall acquisition plans as we continue to expand Colorado. Our team is excited to add another store brand to our house of brands, “Schwazze CEO Justin Dye said in a statement announcing the Emerald Fields deal.
Formerly known as Medicine Man Technologies, Schwazze owns or now has agreements to own 22 dispensers throughout Colorado, including Star Buds and Mesa Organics, a former pharmacy brand in southern Colorado, now under the Star Buds chain. The company closed for a marijuana cultivation in Huerfano County earlier this year and has a pending agreement to buy a 37,000-square-foot growing business in Denver.
According to Dye, this is all part of a plan to “aggressively execute” Schwazze’s expansion in Colorado.
Schwazze’s latest acquisition announcements are the latest on a growing list of Colorado marijuana companies that have been bought out by holding companies including Green Dragon, LivWell Enlightened Health, Los Sueños Farms, Wana Brands and Medicine Man.
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