Schwazze Announces Fourth Quarter & Full Year 2021 Results

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DENVER, CO – March 31, 2022 – Schwazze, (OTCQX:SHWZ; NEO:SHWZ) (“Schwazze” or the “Company”), today announced financial results for the fourth quarter (“Q4-2021”) and for the year ended (“Y-E”) December 31, 2021 (“Y-E 2021”). 

 Y-E 2021 Financial Summary:

• Revenues of $108.4 million grew 352% compared to $24.0 million Y-E 2020
• Gross Margin of $49.4 million was 629% better than YE 2020 and 1,730 bps over Y-E 2020
• Net Income Attributed to Common Shareholders was $7.2 million or $0.17 Basic Earnings per share compared to a Net Loss of ($19.4) million in 2020 or ($0.47) Basic Loss per share
• Adjusted EBITDA of $32.2 million was 29.7% of revenue, compared to a loss of ($7.6) million Y-E 2020
• Cash Flow from operations for Y-E 2021 was $57.3 million⁽¹⁾ compared to ($9.8) million Y-E 2020
• Retail Sales were $73.7 million and when compared to last year Retail Sales were up 1,811%
• Two year stacked IDs for same store sales⁽²⁾ were 47.3% and one year IDs were 13.3%
  • Average basket size⁽²⁾ for 2021 was $59.70 up 9.5% compared to Y-E 2020
  • Recorded customer visits⁽²⁾ for 2021 totaled 1,375,589 up 3.8%, compared to Y-E 2020

Q4 2021 Financial Summary:

• Revenues of $26.5 million grew 234% compared to $7.9 million in Q4 2020
• Gross Margin of $12.1 million was 1,856% better than Q4 2020 and 3,798 bps over Q4 2020
• Net Income Attributed to Common Shareholders was $5.5 million compared to a Net Loss of ($8.5) million for the same period last year
• Adjusted EBITDA of $7.5 million for the quarter was 28.3% of revenue, compared to a loss of ($3.4) million for the same period last year
• Cash Flow from operations for the quarter was $52.5 million⁽¹⁾ compared to ($3.5) million for the same period last year
• Retail sales for the quarter were $19.6 million and were up 887% when compared to the same period last year
• Two year stacked IDs for Q4 2021 compared to Q4 2019 for same store sales⁽²⁾ were 40.4% and one year IDs⁽²⁾ were 4.9% comparing Q4 2021 to Q4 2020
  • Average basket size⁽²⁾ for Q4 2021 was $59.70 up 12.1% compared to Q4 2020
  • Recorded customer visits⁽²⁾ for Q4 2021 totaled 329,357 down 7.2%, compared to Q4 2020

Accomplishments for Y-E 2021 and Q1 2022

Since April 2020, Schwazze has acquired or announced the planned acquisition of 33 cannabis dispensaries as well as seven cultivation facilities and two manufacturing assets in Colorado and New Mexico. 

Q1 2022

• Listed Common Shares of Schwazze onto the NEO Exchange
• Signed Definitive Agreement to Acquire Assets of Urban Health & Wellness
• Closed Acquisition of Brow 2 LLC Assets
• Closed Acquisition of Emerald Fields
• Added President of New Mexico Division
• Closed New Mexico Acquisition, Becoming a Regionally Focused MSO
• Added to Key Senior Leadership Team
• Closed Acquisition of Drift Assets

2021

• Closed Acquisition of Smoking Gun Assets
• Announced Convertible Debt Raise
• Announced Home Delivery Services
• Closed Acquisition of Southern Colorado Growers Assets
• Announced R&D Subsidiary, Schwazze BioSciences, LLC
• Completed Acquisition of Final Seven Star Buds

“2021 was a transformational year for Schwazze as we became an MSO with a super-regional focus and a clear strategy to “go deep” in the states we are now operating in.  Our private capital raise of $95 million provided momentum for our M&A and organic growth strategy.  The Company’s stock was listed on the NEO Exchange, earlier this month, providing an additional platform for liquidity and awareness of our stock for retail and institutional investors,” stated Justin Dye, CEO of Schwazze. “To date, Schwazze has acquired or announced the acquisition of 33 dispensaries, of which 14 were closed in the first quarter of 2022.  Revenue for the year was $108.4 million, up 352%, and our retail numbers were $73.7 million, up 1,811%.  Our wholesale business continued to win customers and delivered 85% revenue growth.  We continued our upward trend with an increase in average basket size of 9.5% and customer visits by 3.8% year over year.  I am proud of our entire team, as Schwazze, once again outpaced the state of Colorado by 11.3%.”

Y-E 2021 Revenue

Total revenue was $108.4 million for the year ended March 31, 2021, compared to $24.0 million during the same period in 2020 and represents an increase of approximately 352%.  Retail sales were $73.7 million for 2021 from $3.9 million dollars the previous year representing a 1,811% increase driven primarily by acquisitions of dispensaries in Colorado.  Wholesale operations revenue increased to $34.4 million from $18.6 million compared to the previous year representing an 85% increase, primarily driven by acquisition of cultivation facilities and increase in sales of distillate products to the market. Other sales were $0.3 million from $1.5 million the previous year, primarily driven by the pivoting away consulting sales.  

Total cost of goods and services for the year totaled $59.1 million compared to $17.2 million during the same period in 2020, representing an increase of 243%, due to increased sales of products and growth through acquisition.

Gross profit increased to $49.4 million for the year compared to $6.8 million during the same period in 2020. Gross profit margin rose as a percentage of revenue from 28.2% to 45.5%, continued to be driven by the strength of the Star Buds acquisition, our consolidated purchasing approach, and the implementation of our retail playbook.

The Average basket size for 2021 was $59.70 up 9.5%, compared to 2020⁽²⁾.  Recorded customer visits totaled 1,375,589 up 3.8%, compared to 2020⁽²⁾. 

Total operating expenses were $38.9 million for the year compared to $29.7 million during the same period in 2020. The higher expenses are attributed to increased selling, general and administrative expenses, salaries, benefits, and related employment costs.

Net income attributed to common shareholders for the year was $7.2 million or $0.17 basic earnings per share, compared to a net loss of ($19.4) million or ($0.47) basic earnings per share for the same period last year.

Adjusted EBITDA for the year was $32.2 million representing 29.7% of revenue., compared to a loss of ($7.6) million for the same period last year. This is derived from Operating Income and adjusting one-time expenses, merger and acquisition and capital raising costs, non-cash related compensation costs, and depreciation and amortization. See the financial table for Adjusted EBITDA below adjustment for details. 

For the year ended 2021, the Company generated a positive operating cash flow of $57.3 million⁽¹⁾ compared to a loss of ($9.8) million for the same period with $106.4 million in cash and cash equivalents for the year ended 2021.  

Nancy Huber, CFO for Schwazze commented, “we’ve delivered an excellent year with the continued generation of operating cash flows from our acquired businesses.  With funds from operations as well as our recent raise, we will continue to deploy capital in new acquisitions and improve our stores, manufacturing, and cultivation operations.  We expect to deploy approximately $15 million for capital improvements in our businesses this year.”

2022 Guidance

The Company is providing guidance for a fourth-quarter 2022 (“Q4 2022”) annualized run rate, which excludes transactions that are announced but not closed.  Q4 2022 revenue annualized run rate is projected to be approximately $220 Million – $260 Million, and the projected Q4 2022 adjusted EBITDA annualized run rate is projected to be from $70 million to $82 million.  

NOTES:

• $34.9 million of this year’s operating cash flow was derived from the derivative liability associated with the convertible debt issued in December.
• Schwazze did not own all the assets and entities in part of 2021, 2020 and 2019 and is using unaudited numbers for this comparison.

Adjusted EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non-recurring items, other non-cash items, including stock-based compensation expense, depreciation, and amortization, and further adjusted to remove acquisition and capital raise related costs, and other one-time expenses, such as severance, retention, and employee relocation. The Company uses adjusted EBITDA as it believes it better explains the results of its core business. The Company has not reconciled guidance for adjusted EBITDA to the corresponding GAAP financial measure because it cannot provide guidance for the various reconciling items. The Company is unable to provide guidance for these reconciling items because it cannot determine their probable significance, as certain items are outside of its control and cannot be reasonably predicted. Accordingly, a reconciliation to the corresponding GAAP financial measure is not available without unreasonable effort.

Webcast – March 31, 2022 – 4:30 ET

Investors and stakeholders may participate in the conference call by dialing 416 764 8650 or by dialing North American toll free 888-664-6383 or by listening to the webcast from the Company’s website at https://ir.schwazze.com. The webcast will be available on the Company’s website and on replay until April 7, 2022 and accessed by dialing 888-390-0541 / 040354#.

Following their prepared remarks, Chief Executive Officer, Justin Dye and Chief Financial Officer, Nancy Huber will answer investor questions. Investors may submit questions in advance or during the conference call through the weblink: https://produceredition.webcasts.com/starthere.jsp?ei=1531076&tp_key=128c98ab58  This weblink has been posted to the Company’s website and will be archived on the website. All Company SEC filings can also be accessed on the Company website at https://ir.schwazze.com/sec-filings

About Schwazze

Schwazze (OTCQX: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high- performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices. Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth. 

Forward-Looking Statements

This press release contains “forward-looking statements.” Such statements may be preceded by the words “plan,” “will,” “may,” “continue,” “predicts,” or similar words. Forward-looking statements include the guidance provided regarding the Company’s Q4 2022 performance and annual capital spending. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, (x) the timing and extent of governmental stimulus programs, (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws, and (xii) our ability to achieve the target metrics, including our annualized revenue and EBIDTA run rates set out in our Q4 2022 guidance. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

Investors Joanne Jobin Investor Relations Joanne.jobin@schwazze.com 647 964 0292

Daniel Pabon General Counsel dan@schwazze.com 303-371-0387 x1031

Media Julie Suntrup, Schwazze Vice President | Marketing & Merchandising julie.suntrup@schwazze.com 303 371 0387

MEDICINE MAN TECHNOLOGIES, INC.

CONDENSED BALANCE SHEETS

For the Years Ended December 31, 2021 and 2020

Expressed in U.S. Dollars 

		December 31				December 31,
		2021				2020
ASSETS			(Audited)				(Audited)
Current assets
Cash and cash equivalents		$	106,400,216			$	1,231,235
Accounts receivable, net of allowance for doubtful accounts			3,866,828				1,270,380
Accounts receivable – related party			–				80,494
Inventory			11,121,997				2,619,145
Note receivable – current, net			–				–
Note receivable – related party			–				181,911
Prepaid expenses and other current assets			2,523,214				614,200
Total current assets			123,912,255				5,997,365
Non-current assets
Fixed assets, net accumulated depreciation of $1,988,973 and $872,579, respectively			10,253,226				2,584,798
Goodwill			43,316,267				53,046,729
Intangible assets, net accumulated amortization of $7,652,750 and $200,456, respectively			97,582,330				3,082,044
Marketable securities, net of unrealized gain (loss) of $216,771 and $(129,992), respectively			493,553				276,782
Note receivable – noncurrent, net			143,333				–
Accounts receivable – litigation			303,086				3,063,968
Other noncurrent assets			514,962				51,879
Operating lease right of use assets			8,511,780				2,579,036
Total non-current assets			161,118,537				64,685,236
Total assets		$	285,030,792			$	70,682,601
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable		$	2,548,885			$	3,508,478
Accounts payable – related party			36,820				48,982
Accrued expenses			5,592,222				2,705,445
Derivative liabilities			34,923,013				1,047,481
Deferred revenue			–				50,000
Notes payable – related party			134,498				5,000,000
Income taxes payable			2,027,741				–
Total current liabilities			45,263,179				12,360,386
Long term debt			97,482,468				13,901,759
Lease liabilities			8,715,480				2,645,597
Total long-term liabilities			106,197,948				16,547,356
Total liabilities			151,461,127				28,907,742
Stockholders’ equity
Common stock, $0.001 par value. 250,000,000 shares authorized; 45,455,490 shares issued and 44,717,046 shares outstanding at December 31, 2021 and 42,601,773 shares issued and 42,169,041 shares outstanding as of December 31, 2020, respectively			45,485				42,602
Preferred stock, $0.001 par value. 10,000,000 shares authorized; 86,994 shares issued and outstanding at December 31, 2021 and 10,000,000 shares authorized; 19,716 shares issued and outstanding at December 31, 2020			87				20
Additional paid-in capital			162,815,097				85,357,835
Accumulated deficit			(27,773,968	)			(42,293,098	)
Common stock held in treasury, at cost, 517,044 shares held as of December 31, 2021 and 432,732 shares held as of December 31, 2020.			(1,517,036	)			(1,332,500	)
Total stockholders’ equity			133,569,665				41,774,859
Total liabilities and stockholders’ equity		$	285,030,792			$	70,682,601

 

See accompanying notes to the financial statements

MEDICINE MAN TECHNOLOGIES, INC.

CONDENSED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)

For the Quarters & Years Ended December 31, 2021 and 2020

Expressed in U.S. Dollars

	Quarter Ended				Quarter Ended				Year Ended				Year Ended
	December 31,				December 31,				December 31,				December 31,
	2021				2020				2021				2020
		(Un-audited)				(Un-audited)				(Audited)				(Audited)
Operating revenues
Retail	$	19,639,774			$	1,990,334			$	73,723,654			$	3,858,613
Wholesale		6,816,482				5,738,755				34,471,447				18,647,780
Other		59,722				213,926				225,138				1,494,459
Total revenue		26,515,978				7,943,015				108,420,239				24,000,852
Cost of goods and services
Cost of goods and services		14,373,780				7,322,355				59,066,545				17,226,486
Total cost of goods and services		14,373,780				7,322,355				59,066,545				17,226,486
Gross profit		12,142,198				620,660				49,353,694				6,774,366
Operating expenses
Selling, general and administrative expenses		3,035,837				1,469,512				16,616,306				4,523,603
Professional services		880,238				3,155,114				5,346,934				8,545,300
Salaries		3,437,676				2,404,407				11,943,409				8,377,889
Stock based compensation		1,172,291				2,414,705				5,037,879				8,230,513
Total operating expenses		8,526,042				9,443,738				38,944,528				29,677,305
Income (loss) from operations		3,616,156				(8,823,078	)			10,409,166				(22,902,939	)
Other income (expense)
Interest income (expense), net		(2,487,533	)			(88,186	)			(7,014,279	)			(41,460	)
Gain on forfeiture of contingent consideration		–				–				–				1,462,636
Unrealized gain (loss) on derivative liabilities		14,093,391				(264,586	)			15,061,142				1,263,264
Other income (expense)		–				–				–				32,621
Gain (loss) on sale of assets		–				–				242,494				–
Unrealized gain (loss) on investments		6,086				(250,792	)			216,771				(129,992	)
Total other income (expense)		11,611,944				(603,564	)			8,506,128				2,587,069
Provision for income taxes (benefit)		2,398,259				(899,109	)			4,396,164				(899,109	)
Net income (loss)	$	12,829,841			$	(8,527,533	)		$	14,519,130			$	(19,416,761	)
Less: Accumulated preferred stock dividends for the period		(7,346,153	)			–				(7,346,153)				–
Net income (loss) attributable to common stockholders	$	5,483,688			$	(8,527,533	)		$	7,172,977			$	(19,416,761	)
Earnings (loss) per share attributable to common shareholders
Basic earnings (loss) per share	$	0.13			$	(0.21)			$	0.17			$	(0.47	)
Diluted earnings (loss) per share									$	(0.06	)		$	(0.47	)
Weighted average number of shares outstanding – basic		43,339,092				41,217,026				43,339,092				41,217,026
Weighted average number of shares outstanding – diluted										101,368,958				41,217,026
Comprehensive income (loss)	$	12,829,841			$	(8,527,533	)		$	14,519,130			$	(19,416,761	)

See accompanying notes to the financial statements

MEDICINE MAN TECHNOLOGIES, INC.

STATEMENT OF CASH FLOWS (UNAUDITED)

For the Quarters & Years Ended December 31, 2021 and 2020

Expressed in U.S. Dollars

	Quarter Ended				Quarter Ended					Year Ended				Year Ended
	December 31,				December 31,					December 31,				December 31,
	2021				2020					2021				2020
Cash flows from operating activities
Net income (loss) for the period	$	12,829,841			$	(8,527,533	)			$	14,519,130			$	(19,416,761	)
Adjustments to reconcile net income to cash used in operating activities
Depreciation and amortization		797,037				154,300					8,576,865				476,592
Deferred taxes		–				268,423					–				268,423
(Gain) loss on change in derivative liabilities		34,843,283				264,585					33,875,532				(2,725,901	)
(Gain) loss on investment, net		(6,086	)			250,792					(216,771	)			129,992
(Gain) loss on sale of assets		49,985				–					(242,494	)			–
Stock based compensation		1,172,291				2,414,705					5,037,879				8,230,513
Changes in operating assets and liabilities
Accounts receivable		2,424,575				(417,893	)				244,929				874,616
Inventory		(1,668,940	)			510,207					(4,703,186	)			781,512
Prepaid expenses and other current assets		55,821				(359,598	)				(1,909,014	)			(84,784	)
Other assets		(60,900	)			76,121					(457,083	)			(51,878	)
Operating leases right of use assets and liabilities		23,010				32,673					137,139				59,701
Accrued interest on notes receivable		–				–					–				–
Accounts payable and other liabilities		1,062,106				1,787,521					493,719				1,610,226
Deferred revenue		–				50,000					(50,000	)			50,000
Income taxes payable		998,259				–					2,027,741				(1,940	)
Net cash provided by (used in) operating activities		52,520,282				(3,495,697	)				57,334,386				(9,799,689	)
Cash flows from investing activities:
Collection (issuance) of notes receivable		–				349,210					181,911				827,495
Cash consideration for acquisition of business		(3,750,929	)			(30,668,962	)				(75,678,000	)			(33,278,462	)
Purchase of fixed assets – net		(1,768,427	)			208,512					(5,638,085	)			(768,173	)
Purchase of intangible assets		–				–					(29,580	)			–
Net cash provided by (used in) investing activities		(5,519,356	)			(30,111,240	)				(81,163,754	)			(33,219,140	)
Cash flows from financing activities:
Proceeds from issuance of debt, net		38,236,131				13,901,759					83,580,709				13,901,759
Repayment of notes payable		–				5,000,000					(4,865,502	)			5,000,000
Proceeds from issuance of common stock, net of issuance costs		345				12,583,312					50,283,142				12,625,312
Proceeds from exercise of common stock purchase warrants, net of
issuance costs		–				374,810									374,810
Net cash provided by financing activities		38,236,476				31,859,881					128,998,349				31,901,881
Net increase (decrease) in cash and cash equivalents		85,237,402				(1,747,056	)				105,168,981				(11,116,948	)
Cash and cash equivalents at beginning of period		21,162,814				2,978,291					1,231,235				12,348,183
Cash and cash equivalents at end of period	$	106,400,216			$	1,231,235				$	106,400,216				1,231,235

See accompanying notes to the financial statements

 

MEDICINE MAN TECHNOLOGIES, INC.

Adjusted EBITDA Reconciliation

Non-GAAP measurement

 (UNAUDITED)

	Quarter Ended				Quarter Ended				Year Ended				Year Ended
	December 31,				December 31,				December 31,				December 31,
	2021				2020				2021				2020
Net income (loss)		$12,829,841				$(8,527,533)				$14,519,130				$(19,416,761)
Interest income (expense), net		2,487,533				88,186				7,014,279				41,460
Provision for income taxes (benefit)		2,398,259				(899,109)				4,396,164				(899,109)
Other (income) expense		(14,099,477)				515,378				(15,520,407)				(2,628,529)
Depreciation and amortization		797,037				154,300				8,576,865				476,592
Earnings before interest, taxes, depreciation and amortization (EBITDA) (non-GAAP measure)		$4,413,193				$(8,668,778)				$18,986,031				$(22,426,347)
Non-cash stock compensation		1,172,291				2,414,705				5,037,879				8,230,513
Deal related expenses		712,049				831,007				2,779,151				3,684,553
Capital raise related expenses		256,321				797,358				1,512,565				1,337,708
Severance		5,054				702,874				166,557				989,864
Retention program expenses		1,188				–				90,250				–
Employee relocation expenses		2,428				(6,333)				40,819				27,491
Other non-recurring items		939,718				547,523				3,552,836				547,523
Adjusted EBITDA (non-GAAP measure)		$7,502,242				$(3,381,644)				$32,166,088				$(7,608,695)

The Metaverse will Now Include Fast Food’s Favorite Redhead

 

This calendar week each year, I’m always skeptical of stories that seem to not jibe with reality. Around April Fools’ you see even the most stodgy firms trying to shock and have some fun. I still remember last year when Volkswagen created a stir by saying it was rebranding to VOLTswagen? So when Wendy’s, which loves to have fun on Twitter, announced it was creating Wendysverse, I needed to triple check if their metaverse announcement was a reality or a stunt.

 

In March of 2021 VW got in trouble with the SEC with a prank that significantly moved
their stock price

 

The reality is the fast-food restaurant is available in virtual reality. Wendy’s will exist on Meta’s Horizon Worlds (Facebook) platform incarnated as “Wendyverse.”  This is a marketing and gaming combination that will help their brand stay in front of consumers in the virtual world.

As of April 2, those with a Quest 2 headset will be able to enter the metaverse activation, which is divided into two areas: Towne Square Central, home to a virtual Wendy’s restaurant, and Partnership Plaza, where players can shoot Baconators on a branded basketball court called the Buck BiscuitDome (which is a limited-edition menu item that is currently available). The experiences were developed through a collaboration between Wendy’s and community creators.

 

Wendy’s didn’t invent marketing in VR. Metaverse locations like Wendyverse are being rolled out by others as brands work to stay fresh by being digitally minded to attract and retain younger customers. For some of these virtual worlds, the customers have to be at least 21 as Jose Cuervo announced plans to build a distillery in Decentraland. Also, Miller Lite opened a bar on Decentraland for the Super Bowl. Fast food restaurants in particular have been building out virtual spaces as they look to build on their base of consumers by marketing in a game-like setting and going where their customers are. Even McDonald’s and Chipotle have created virtual experiences – Arby’s recently filed trademarks to offer virtual food and beverages.

 

Source: @wendys (Twitter)

What’s noteworthy about Wendy’s entry is their use of Meta’s Horizon Worlds. The platform, which just hit 300,000 users, requires an Oculus headset, which can cost near $300. This may allow a more immersive Wendysville experience, but could also limit the number of potential visitors. Horizon Worlds platform has seen fewer brand partnerships to date than rival platforms like Roblox, Decentraland and The Sandbox – cost of entry is one of the reasons.

To visit Wendyverse, customers must first download the Horizon Worlds app. Inside the app, they have to search for Wendyverse and click on a picture to travel to the virtual world.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Zuckerberg Top Executive Joins NobleCon18 Lineup

Walmart’s Metaverse, NFT, and Crypto Plans

The Metaverse is Under Construction, Here’s What is Known

Microsoft and Facebook are Now All In on the Metaverse

 

Sources

https://www.theverge.com/2022/2/17/22939297/meta-social-vr-platform-horizon-300000-users

https://omicronb11529variant.com/wendys-opens-metaverse-restaurant-in-metas-horizon-worlds-adage-com/

https://www.marketingdive.com/news/wendys-metaverse-meta-horizon-worlds/621325/

https://twitter.com/Wendys/status/1509185783776878598

https://www.restaurantbusinessonline.com/marketing/wendys-newest-location-will-be-metaverse

 

Stay up to date. Follow us:

The Metaverse will Now Include Fast Food’s Favorite Redhead

 

This calendar week each year, I’m always skeptical of stories that seem to not jibe with reality. Around April Fools’ you see even the most stodgy firms trying to shock and have some fun. I still remember last year when Volkswagen created a stir by saying it was rebranding to VOLTswagen? So when Wendy’s, which loves to have fun on Twitter, announced it was creating Wendysverse, I needed to triple check if their metaverse announcement was a reality or a stunt.

 

In March of 2021 VW got in trouble with the SEC with a prank that significantly moved
their stock price

 

The reality is the fast-food restaurant is available in virtual reality. Wendy’s will exist on Meta’s Horizon Worlds (Facebook) platform incarnated as “Wendyverse.”  This is a marketing and gaming combination that will help their brand stay in front of consumers in the virtual world.

As of April 2, those with a Quest 2 headset will be able to enter the metaverse activation, which is divided into two areas: Towne Square Central, home to a virtual Wendy’s restaurant, and Partnership Plaza, where players can shoot Baconators on a branded basketball court called the Buck BiscuitDome (which is a limited-edition menu item that is currently available). The experiences were developed through a collaboration between Wendy’s and community creators.

 

Wendy’s didn’t invent marketing in VR. Metaverse locations like Wendyverse are being rolled out by others as brands work to stay fresh by being digitally minded to attract and retain younger customers. For some of these virtual worlds, the customers have to be at least 21 as Jose Cuervo announced plans to build a distillery in Decentraland. Also, Miller Lite opened a bar on Decentraland for the Super Bowl. Fast food restaurants in particular have been building out virtual spaces as they look to build on their base of consumers by marketing in a game-like setting and going where their customers are. Even McDonald’s and Chipotle have created virtual experiences – Arby’s recently filed trademarks to offer virtual food and beverages.

 

Source: @wendys (Twitter)

What’s noteworthy about Wendy’s entry is their use of Meta’s Horizon Worlds. The platform, which just hit 300,000 users, requires an Oculus headset, which can cost near $300. This may allow a more immersive Wendysville experience, but could also limit the number of potential visitors. Horizon Worlds platform has seen fewer brand partnerships to date than rival platforms like Roblox, Decentraland and The Sandbox – cost of entry is one of the reasons.

To visit Wendyverse, customers must first download the Horizon Worlds app. Inside the app, they have to search for Wendyverse and click on a picture to travel to the virtual world.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Zuckerberg Top Executive Joins NobleCon18 Lineup

Walmart’s Metaverse, NFT, and Crypto Plans

The Metaverse is Under Construction, Here’s What is Known

Microsoft and Facebook are Now All In on the Metaverse

 

Sources

https://www.theverge.com/2022/2/17/22939297/meta-social-vr-platform-horizon-300000-users

https://omicronb11529variant.com/wendys-opens-metaverse-restaurant-in-metas-horizon-worlds-adage-com/

https://www.marketingdive.com/news/wendys-metaverse-meta-horizon-worlds/621325/

https://twitter.com/Wendys/status/1509185783776878598

https://www.restaurantbusinessonline.com/marketing/wendys-newest-location-will-be-metaverse

 

Stay up to date. Follow us:

Schwazze CFO Nancy Huber provides a preview of their upcoming presentation at NobleCon18 NobleCon18 – Noble Capital Markets 18th Annual Small and Microcap Investor Conference – April 19-21, 2022 – Hard Rock, Hollywood, FL 100+ Public Company Presentations | Scheduled Breakouts | Panel Presentations | High-Profile Keynotes | Educational Sessions | Receptions & Networking Events Free Registration Available – More Info Research News and Advanced Market Data on SHWZ NobleCon18 Presenting Companies About Schwazze Schwazze (OTCQX: SHWZ; NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high- performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices. Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.

RCI Hospitality Holdings CFO Bradley Chhay provides a preview of their upcoming presentation at NobleCon18 NobleCon18 – Noble Capital Markets 18th Annual Small and Microcap Investor Conference – April 19-21, 2022 – Hard Rock, Hollywood, FL 100+ Public Company Presentations | Scheduled Breakouts | Panel Presentations | High-Profile Keynotes | Educational Sessions | Receptions & Networking Events Free Registration Available – More Info Research News and Advanced Market Data on RICK NobleCon18 Presenting Companies About RCI Hospitality Holdings With more than 50 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in gentlemen’s clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie’s Cabaret, and Scarlett’s Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.

Tuesday, March 22, 2022

FAT Brands Inc. (FAT)
Growth Continues in the Fourth Quarter

FAT Brands Inc is a multi-brand restaurant franchising company. It develops, markets, and acquires predominantly fast casual restaurant concepts. The company provides turkey burgers, chicken Sandwiches, chicken tenders, burgers, ribs, wrap sandwiches, and others. Its brand portfolio comprises Fatburger, Buffalo’s Cafe and Express, and Ponderosa and Bonanza. The company’s overall footprint covers nearly 32 countries. Fatburger generates maximum revenue for the company.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q21 Results. Fat Brands reported 4Q21 revenue of $74.2 million, up from $29.8 million in the third quarter and compared to $6.5 million in 4Q20. The increased revenue reflects the GFG and Twin Peaks acquisitions and about 10 days of revenue from the Fazoli’s and Native acquisitions. FAT reported adjusted EBITDA of $10.4 million in 4Q21. Net loss for the quarter was $19.6 million, or $1.38 per share, compared to a net loss of $3.6 million, or $0.26 per share in 3Q21 and a net loss of $7.7 million, or $0.64 per share, in 4Q20.

Solid Growth.  Same store sales in the quarter rose 5.6% over the fourth quarter of 2019 and were up 8.5% if the recent acquisitions were included. Thirty new locations were opened during the quarter, bringing the full year count to 115. FAT ended the year with 2,369 locations, 761 franchise partners, and 333 multi-unit franchisees …

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. 

 

Monday, March 21, 2022

1-800-Flowers.com (FLWS)
In For A Rough Spell

1-800-FLOWERS.COM, Inc. is the leading provider of gourmet and floral gifts for all occasions. For nearly 40 years, 1-800-FLOWERS® has been helping deliver smiles for customers with gifts for every occasion, including fresh flowers, premium, gift-quality fruits, and other gourmet items from Harry & David®, popcorn and specialty treats from The Popcorn Factory®; cookies and baked gifts from Cheryl’s®; premium chocolates and confections from Fannie May®; gift baskets and towers from 1-800-Baskets.com®; premium English muffins and other breakfast treats from Wolferman’s; carved fresh fruit arrangements from FruitBouquets.com; and top quality steaks and chops from Stock Yards®. The Company’s BloomNet® international floral wire service provides a broad range of quality products and value-added services designed to help professional florists grow their businesses profitably.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Outlook takes a turn. Consumer confidence has waned, there is worsening inflation, and continued supply chain disruptions, all indicate that the company has entered into a challenging operating environment. As such, we are lowering our revenue and adj. EBITDA expectations for the company for fiscal 2022 and taking a sobering view of fiscal 2023.

Cost reductions provide benefit.  The company continues to automate its operations where possible to lower costs. Recently the company reduced its labor force by 40% at an Ohio facility as a result of automation. We believe such steps are especially important for the company during the current economic environment, which is expected to impact margins …

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. 

 

Friday, March 18, 2022

Item 9 Labs (INLB)
Further Expansion into Colorado

Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The award-winning Item 9 Labs brand specializes in best-in-class products and user experience across several cannabis categories. The company also offers a unique dispensary franchise model through the national Unity Rd. retail brand. Easing barriers to entry, the franchise provides an opportunity for both new and existing dispensary owners to leverage the knowledge, resources, and ongoing support needed to thrive in their state compliantly and successfully. Item 9 Labs brings the best industry practices to markets nationwide through distinctive retail experience, cultivation capabilities, and product innovation. The veteran management team combines a diverse skill set with deep experience in the cannabis sector, franchising, and the capital markets to lead a new generation of public cannabis companies that provide transparency, consistency, and well-being. Headquartered in Arizona, the company is currently expanding its operations space by 650,000+ square feet on its 50-acre site, one of the largest properties in Arizona zoned to grow and cultivate flower. For additional information, visit item9labscorp.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

The Acquisition. Hot on the heels of the announced Reg A offering, Item 9 Labs’ is acquiring The Herbal Cure, a medicinal and recreational dispensary and cultivator in Denver. Herbal Cure had revenues of $5.4 million in 2021, and will be transitioning over the Unity Rd. brand over the next six months, pending approval from Colorado’s Marijuana Enforcement Division (the “MED”) and the City of Denver. Terms of the deal were not released.

A Path for Item 9 Products.  With a 3,000 square-foot medicinal and recreational cultivation facility, The Herbal Cure will enable Item 9 Labs to introduce its award-winning cannabis products to the Colorado market in the year ahead. Item 9 will have a built-in base of three dispensaries through which to sell its product and the potential to penetrate non-Unity Rd. dispensaries …

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. 

 

Item 9 Labs Corp. to Acquire The Herbal Cure in Denver, Colorado

Research, News, and Market Data on Item 9 Labs

 

• Future Flagship Corporate Location Generated $5.4 Million in Revenue in 2021
• Second Colorado Acquisition Fuels Market Expansion for the Company’s Dispensary Franchise, Unity Rd.
• Acquisition Includes Cultivation License, Complementing the Company’s National Retail and Product Expansion Efforts

DENVER, March 17, 2022 /PRNewswire/ — Item 9 Labs Corp. (OTCQX: INLB) (the “Company”) — a vertically integrated cannabis dispensary franchisor and operator that produces premium, award-winning products — announced today that it has signed an Asset Purchase Agreement (the “APA”) with The Herbal Cure, a medicinal and recreational dispensary and cultivator operating in Denver, Colorado.

The Herbal Cure was founded in 2010 and generated revenues of $5.4 million in 2021. Located in the desirable and central neighborhood of Washington Park in Denver, the 1,500 square-foot medicinal and recreational dispensary will be the Company’s future flagship location for the brand. Item 9 Labs Corp. anticipates the dispensary to be transitioned over to its cannabis dispensary franchise brand, Unity Rd., within six months of closing the acquisition, which is currently awaiting regulatory approval by Colorado’s Marijuana Enforcement Division (the “MED”) and the City of Denver.

The acquisition includes the current 5,000 square-foot facility, which has 3,500 square feet of space for on-site cultivation operations, corporate offices, team training and more. Item 9 Labs Corp. has room to expand the sales floor with additional point-of-sale terminals and expanded product assortment, in addition the potential to offer delivery services through one of the Company’s social equity partners.

On the cultivation side, the APA also consists of a 3,000 square-foot medicinal and recreational cultivation. The Company anticipates introducing its award-winning cannabis products from Item 9 Labs to the Colorado market in the year ahead. With nearly 30 podium finishes in Arizona marijuana competitions, Item 9 Labs is a trusted source for premium cannabis products with a catalog that spans 100-plus products across five core categories, including several active cannabis strains, cannabis vape products, premium concentrates and Orion vape technology.

“The Herbal Cure acquisition represents an accretive opportunity for the Company and is well-positioned with our national retail and product expansion strategy,” said the Company’s Chief Strategy Officer, Jeffrey Rassas.

Unity Rd. is the growth vehicle that will bring Item 9 Labs products to new markets. The Company is focusing product expansion efforts on states such as Colorado, where there are two to three Unity Rd. shops in operation to ease new market product entry and focus operations. In Colorado, Unity Rd. currently has a franchise shop located in Boulder as well as a corporate shop opening in the next few months in Adams County that will later be sold to a Unity Rd. franchise partner. This expansion strategy gives the Company’s dispensary franchise partners front-of-the-line access to a reliable, award-winning product supply chain. The Unity Rd. brand also benefits from the national product consistency that consumers have come to expect from franchise brands.

“With The Herbal Cure dispensary ideally located in South Denver, we anticipate seeing accelerated brand penetration in the market thanks to heightened exposure amongst daily commuters as well as high traffic from tourism, especially during the summer months,” said the Company’s Vice President of Mergers and Acquisitions, Mark Busch. “This flagship location is a tremendous value-add for the Unity Rd. brand as we develop in the Colorado market and is a premier avenue for our plan to bring our Item 9 Labs products to the state.”

In addition to Colorado, Item 9 Labs Corp. is actively seeking acquisitions of cannabis dispensaries in key markets in Arizona, Michigan and Oklahoma to convert into the Unity Rd. brand. Currently, the dispensary franchise has multiple agreements signed with nearly 20 entrepreneurial groups who are in various stages of development nationwide. It offers entrepreneurs the tools, resources, systems and training needed to successfully run a cannabis dispensary in their market, meanwhile maintaining full ownership of their business and dispensary license.

More Information on Item 9 Labs Corp. and its brands:
Visit https://item9labscorp.com/

Cannabis Operators Interested in Selling Their Dispensary License:
Contact Mark Busch at acquisitions@item9labs.com

About Item 9 Labs Corp.
Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The award-winning Item 9 Labs brand specializes in best-in-class products and user experience across several cannabis categories. The company also offers a unique dispensary franchise model through the national Unity Rd. retail brand. Easing barriers to entry, the franchise provides an opportunity for both new and existing dispensary owners to leverage the knowledge, resources, and ongoing support needed to thrive in their state compliantly and successfully. Item 9 Labs brings the best industry practices to markets nationwide through distinctive retail experience, cultivation capabilities, and product innovation. The veteran management team combines a diverse skill set with deep experience in the cannabis sector, franchising, and the capital markets to lead a new generation of public cannabis companies that provide transparency, consistency, and well-being. Headquartered in Arizona, the company is currently expanding its operations space by up to 640,000-plus square feet on its 50-acre site, one of the largest properties in Arizona zoned to grow and cultivate flower. For additional information, visit https://investors.item9labscorp.com/.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including, but not limited to, risks and effects of legal and administrative proceedings and governmental regulation, especially in a foreign country, future financial and operational results, competition, general economic conditions, proposed transactions that are not legally binding obligations of the company and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include the introduction of new technology, market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Media Contact:
Item 9 Labs Corp.
Jayne Levy, VP of Communications
Jayne@item9labs.com

Investor Contact:
Item 9 Labs Corp.
800-403-1140
Investors@item9labscorp.com

SOURCE Item 9 Labs Corp.

Schwazze Announces Listing Of Common Shares On The NEO Exchange Under The Symbol SHWZ

Research, News, and Market Data on Schwazze

 

DENVER, March 17, 2022 /CNW/ – Medicine Man Technologies, Inc., dba Schwazze, (OTCQX: SHWZ) (“Schwazze” or the “Company”), is pleased to announce that it has received final approval from the NEO Exchange (the “NEO”) to list the Company’s common shares onto the NEO, a tier one Canadian stock exchange based in Toronto, Ontario.  The common shares are expected to begin trading on the NEO on March 23, 2022, under the symbol SHWZ.

Schwazze is currently listed on the OTCQX and believes that the additional listing onto the NEO, enabling the Company’s common shares to be traded on a senior exchange in Canada, will provide additional exposure to an increased number of retail and institutional investors.

“The NEO listing is an important milestone for Schwazze and provides an additional platform as we bring our story to new investor audiences, and we continue to execute our proven growth playbook as an MSO with a differentiated regional position.” commented Nancy Huber, Chief Financial Officer of Schwazze. “The NEO is now setting the pace for Cannabis companies who want to attract the right institutional attention and increase their liquidity.”

Schwazze public disclosure documents are available under Schwazze’s profiles on EDGAR at www.sec.gov and on SEDAR at www.sedar.com.

About Schwazze
Schwazze (OTCQX: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high- performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices. Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.

About the Neo Exchange Inc.
The Neo Exchange Inc. is Canada’s Tier 1 stock exchange for the innovation economy, bringing together investors and capital raisers within a fair, liquid, efficient, and service-oriented environment. Fully operational since June 2015, NEO puts investors first and provides access to trading across all Canadian-listed securities on a level playing field. NEO lists companies and investment products seeking an internationally recognized stock exchange that enables investor trust, quality liquidity, and broad awareness including unfettered access to market data.

Forward-Looking Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “plan,” “will,” “may,” “continue,” “predicts,” or similar words. Forward-looking statements include the Company’s expectations regarding the listing date for its common shares on the NEO and the expected benefits of listing on the NEO. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to consummate the acquisition described in this press release or to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses, including the acquisition described in this press release, and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, * the timing and extent of governmental stimulus programs, and (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such lawsListing on the NEO is subject to satisfaction of the final listing conditions. The benefits of listing on the NEO depend on increased liquidity for the Company’s shareholders and exposure due to listing on a senior exchange. Such benefits may not be realized. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

SOURCE Medicine Man Technologies, Inc.

Schwazze Announces Listing Of Common Shares On The NEO Exchange Under The Symbol SHWZ

Research, News, and Market Data on Schwazze

 

DENVER, March 17, 2022 /CNW/ – Medicine Man Technologies, Inc., dba Schwazze, (OTCQX: SHWZ) (“Schwazze” or the “Company”), is pleased to announce that it has received final approval from the NEO Exchange (the “NEO”) to list the Company’s common shares onto the NEO, a tier one Canadian stock exchange based in Toronto, Ontario.  The common shares are expected to begin trading on the NEO on March 23, 2022, under the symbol SHWZ.

Schwazze is currently listed on the OTCQX and believes that the additional listing onto the NEO, enabling the Company’s common shares to be traded on a senior exchange in Canada, will provide additional exposure to an increased number of retail and institutional investors.

“The NEO listing is an important milestone for Schwazze and provides an additional platform as we bring our story to new investor audiences, and we continue to execute our proven growth playbook as an MSO with a differentiated regional position.” commented Nancy Huber, Chief Financial Officer of Schwazze. “The NEO is now setting the pace for Cannabis companies who want to attract the right institutional attention and increase their liquidity.”

Schwazze public disclosure documents are available under Schwazze’s profiles on EDGAR at www.sec.gov and on SEDAR at www.sedar.com.

About Schwazze
Schwazze (OTCQX: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high- performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices. Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.

About the Neo Exchange Inc.
The Neo Exchange Inc. is Canada’s Tier 1 stock exchange for the innovation economy, bringing together investors and capital raisers within a fair, liquid, efficient, and service-oriented environment. Fully operational since June 2015, NEO puts investors first and provides access to trading across all Canadian-listed securities on a level playing field. NEO lists companies and investment products seeking an internationally recognized stock exchange that enables investor trust, quality liquidity, and broad awareness including unfettered access to market data.

Forward-Looking Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “plan,” “will,” “may,” “continue,” “predicts,” or similar words. Forward-looking statements include the Company’s expectations regarding the listing date for its common shares on the NEO and the expected benefits of listing on the NEO. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to consummate the acquisition described in this press release or to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses, including the acquisition described in this press release, and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, * the timing and extent of governmental stimulus programs, and (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such lawsListing on the NEO is subject to satisfaction of the final listing conditions. The benefits of listing on the NEO depend on increased liquidity for the Company’s shareholders and exposure due to listing on a senior exchange. Such benefits may not be realized. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

SOURCE Medicine Man Technologies, Inc.

Item 9 Labs Corp. to Acquire The Herbal Cure in Denver, Colorado

Research, News, and Market Data on Item 9 Labs

 

• Future Flagship Corporate Location Generated $5.4 Million in Revenue in 2021
• Second Colorado Acquisition Fuels Market Expansion for the Company’s Dispensary Franchise, Unity Rd.
• Acquisition Includes Cultivation License, Complementing the Company’s National Retail and Product Expansion Efforts

DENVER, March 17, 2022 /PRNewswire/ — Item 9 Labs Corp. (OTCQX: INLB) (the “Company”) — a vertically integrated cannabis dispensary franchisor and operator that produces premium, award-winning products — announced today that it has signed an Asset Purchase Agreement (the “APA”) with The Herbal Cure, a medicinal and recreational dispensary and cultivator operating in Denver, Colorado.

The Herbal Cure was founded in 2010 and generated revenues of $5.4 million in 2021. Located in the desirable and central neighborhood of Washington Park in Denver, the 1,500 square-foot medicinal and recreational dispensary will be the Company’s future flagship location for the brand. Item 9 Labs Corp. anticipates the dispensary to be transitioned over to its cannabis dispensary franchise brand, Unity Rd., within six months of closing the acquisition, which is currently awaiting regulatory approval by Colorado’s Marijuana Enforcement Division (the “MED”) and the City of Denver.

The acquisition includes the current 5,000 square-foot facility, which has 3,500 square feet of space for on-site cultivation operations, corporate offices, team training and more. Item 9 Labs Corp. has room to expand the sales floor with additional point-of-sale terminals and expanded product assortment, in addition the potential to offer delivery services through one of the Company’s social equity partners.

On the cultivation side, the APA also consists of a 3,000 square-foot medicinal and recreational cultivation. The Company anticipates introducing its award-winning cannabis products from Item 9 Labs to the Colorado market in the year ahead. With nearly 30 podium finishes in Arizona marijuana competitions, Item 9 Labs is a trusted source for premium cannabis products with a catalog that spans 100-plus products across five core categories, including several active cannabis strains, cannabis vape products, premium concentrates and Orion vape technology.

“The Herbal Cure acquisition represents an accretive opportunity for the Company and is well-positioned with our national retail and product expansion strategy,” said the Company’s Chief Strategy Officer, Jeffrey Rassas.

Unity Rd. is the growth vehicle that will bring Item 9 Labs products to new markets. The Company is focusing product expansion efforts on states such as Colorado, where there are two to three Unity Rd. shops in operation to ease new market product entry and focus operations. In Colorado, Unity Rd. currently has a franchise shop located in Boulder as well as a corporate shop opening in the next few months in Adams County that will later be sold to a Unity Rd. franchise partner. This expansion strategy gives the Company’s dispensary franchise partners front-of-the-line access to a reliable, award-winning product supply chain. The Unity Rd. brand also benefits from the national product consistency that consumers have come to expect from franchise brands.

“With The Herbal Cure dispensary ideally located in South Denver, we anticipate seeing accelerated brand penetration in the market thanks to heightened exposure amongst daily commuters as well as high traffic from tourism, especially during the summer months,” said the Company’s Vice President of Mergers and Acquisitions, Mark Busch. “This flagship location is a tremendous value-add for the Unity Rd. brand as we develop in the Colorado market and is a premier avenue for our plan to bring our Item 9 Labs products to the state.”

In addition to Colorado, Item 9 Labs Corp. is actively seeking acquisitions of cannabis dispensaries in key markets in Arizona, Michigan and Oklahoma to convert into the Unity Rd. brand. Currently, the dispensary franchise has multiple agreements signed with nearly 20 entrepreneurial groups who are in various stages of development nationwide. It offers entrepreneurs the tools, resources, systems and training needed to successfully run a cannabis dispensary in their market, meanwhile maintaining full ownership of their business and dispensary license.

More Information on Item 9 Labs Corp. and its brands:
Visit https://item9labscorp.com/

Cannabis Operators Interested in Selling Their Dispensary License:
Contact Mark Busch at acquisitions@item9labs.com

About Item 9 Labs Corp.
Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The award-winning Item 9 Labs brand specializes in best-in-class products and user experience across several cannabis categories. The company also offers a unique dispensary franchise model through the national Unity Rd. retail brand. Easing barriers to entry, the franchise provides an opportunity for both new and existing dispensary owners to leverage the knowledge, resources, and ongoing support needed to thrive in their state compliantly and successfully. Item 9 Labs brings the best industry practices to markets nationwide through distinctive retail experience, cultivation capabilities, and product innovation. The veteran management team combines a diverse skill set with deep experience in the cannabis sector, franchising, and the capital markets to lead a new generation of public cannabis companies that provide transparency, consistency, and well-being. Headquartered in Arizona, the company is currently expanding its operations space by up to 640,000-plus square feet on its 50-acre site, one of the largest properties in Arizona zoned to grow and cultivate flower. For additional information, visit https://investors.item9labscorp.com/.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including, but not limited to, risks and effects of legal and administrative proceedings and governmental regulation, especially in a foreign country, future financial and operational results, competition, general economic conditions, proposed transactions that are not legally binding obligations of the company and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include the introduction of new technology, market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Media Contact:
Item 9 Labs Corp.
Jayne Levy, VP of Communications
Jayne@item9labs.com

Investor Contact:
Item 9 Labs Corp.
800-403-1140
Investors@item9labscorp.com

SOURCE Item 9 Labs Corp.

Thursday, March 17, 2022

Schwazze (SHWZ)
A New Year, A New Acquisition

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.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Further Expansion into Colorado. Schwazze’s management announced the acquisition of Urban Health & Wellness, Inc. which includes an adult use dispensary named Urban Dispensary in the Highlands area of Denver, and a 7,200 square foot cultivation facility. This expands Schwazze further into Colorado with the total number of dispensaries now at 23 and cultivation facilities at 4. Overall, Schwazze now has 33 dispensaries and 7 cultivation facilities in Colorado and New Mexico.

Acquisition Details.  The acquisition is for $3.2 million, $1.3 million in cash and $1.9 million in stock, and is expected to close in the second quarter of 2022. The Highlands area of Denver is a high-income neighborhood, with the average income at $105,980 vs the average income of Denver County at $88,779, according to Denver Metro Data. Near the dispensary location Schwazze has purchased, is …

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.