National Marijuana Company buys medicine man
Another of the early Colorado recreational marijuana companies was acquired by a national company: Medicine Man, a network of four pharmacies and a 32,000 square foot grower in the Denver area, has agreed to be bought by Columbia Care in a valued deal will be worth $ 42 million.
Columbia Care, which recently bought Green Solution’s chain of 21 retail pot shops and manufacturing facilities for a $ 140 million deal, currently owns nearly seventy active pharmacies in 13 states. If the Medicine Man acquisition proceeds as planned in the fourth quarter of this year, Columbia Care will own 25 marijuana stores in Colorado alone, as well as a number of marijuana manufacturing facilities and infusion brands.
Founded in 2009 by brother-sister trio Andy Williams, Pete Williams and Sally Vander Veer, Medicine Man had originally accepted an offer to buy from Schwazze (formerly Medicine Man Technologies), a cannabis conglomerate co-founded by Andy Williams, but canceled the agreement in August last year, around the same time as several other Schwazze acquisition deals failed.
In a statement accompanying the announcement of the Columbia Care agreement, Andy Williams said he supported the merger: “Our industry is changing and growing faster than ever, the industry as it grows.”
The deal includes $ 8.4 million in cash and $ 33.6 million in stocks, according to Columbia Care. Vander Veer, who serves as the CEO of Medicine Man, says she will hold that role for at least an additional year, and the Medicine Man employees will continue after the purchase. Columbia Care will maintain the Medicine Man branding in the local chain’s pharmacies in Aurora, Denver, Longmont and Thornton
Vander Veer calls the cancellation of the Schwazze deal a “blessing in disguise” but refuses to give details of how the deal fell apart. Columbia Care’s offer was fair and satisfactory to all owners who moved to Colorado when the three were in elementary school.
“We grew up with poor children,” she explains. “These are just years of hard work that we will celebrate as a family and as a company.”
Jesse Channon, Columbia Care’s Chief Growth Officer, does not rule out possible future expansion of brands such as Medicine Man or The Green Solution. “At the moment we were trying to organize ourselves with a meaningful national brand architecture, with brands that we could carry across the country,” says Channon. “I think something like Medicine Man falls in the same boat, be it a retail experience or from a brand perspective.”
Columbia Care, headquartered in New York, is a publicly traded company that sells over-the-counter stocks; Since announcing the $ 140 million deal with Green Solution in 2019, the company has been busy acquiring and opening pharmacies. As with the Medicine Man deal, the bulk of the Green Solution purchase – $ 110 million – was based on Columbia Care shares.
Columbia Care opened pharmacies in Arizona, California, Illinois, and Utah last month, but Channon still sees value in established markets like Colorado, where nearly $ 2.2 billion of marijuana products were sold in 2020.
“Colorado is a mature market. We definitely see him as one that continues to grow, ”he explains. “I think the combination of Green Solution and Medicine Man also offers an incredible opportunity for technological growth and customer innovation.”
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