Wednesday, August 25, 2021
Schwazze (SHWZ)
The Acquisition Beat Goes On
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.
More Cultivation Expansion. Schwazze has entered into an agreement to acquire the assets of Brow 2 LLC. Denver-based Brow 2 operates a 37,000 sq. ft. building, including 27,000 sq. ft. of canopy, for indoor cultivation and related equipment. Brow 2 adds high-quality flower cultivation capacity and new strain genetics to Schwazze’s portfolio. The price for the acquisition is $6.7 million to be paid in cash at closing, which is expected before the end of the third quarter of 2021.
More to Come? We believe Schwazze will continue to target expansion on the cultivation side as ownership of production provides the Company with a controlled source of differentiated product for both its retail and wholesale operations as well as a better overall margin profile than outsourced product. Schwazze’s integrated operating capabilities provide a cost advantage over mom and pop operators …
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.