Wednesday, June 30, 2021
Schwazze (SHWZ)
Adding More Dispensaries
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.
New Boulder Dispensaries. Schwazze has announced an agreement to acquire the assets of BG3 Investment, LLC, which consists of two marijuana retail stores located in Boulder, Colorado. This brings the number of dispensaries to 19, including nine acquired year-to-date. As part of the purchase, Schwazze also acquired Black Box Licensing, which contains intellectual property. We view the acquisition as another step in Schwazze’s goal to become the leading cannabis dispenser in Colorado.
Terms of the Deal. Schwazze is paying $3.5 million for the assets, consisting of $1.9 million in cash and $1.6 million of common stock, which equates to approximately 670,000 SHWZ shares at the current market price. The transaction represents a 3.5 times multiple of projected 2021 adjusted EBITDA for the two dispensaries. The deal is expected to close during the third quarter of 2021 …
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.