Denver-based Medicine Man Technologies agreed to purchase Colorado’s largest outdoor cannabis grower as well as a local manufacturing and dispensary company, saying a new state investment law paved the way for the deals.
Terms weren’t disclosed.
Medicine Man – a vertically integrated cannabis company – is acquiring cannabis cultivator Los Sueños Farms and MesaPur, a dispensary and infused products company doing business as Purplebee’s.
Both companies are located in southern Colorado, in Pueblo County.
According to a news release, the acquisition was made possible by the recent passage of House Bill 19-1090, which allows out-of-state investors and capital such as publicly held companies and large venture funds to acquire Colorado marijuana companies.
Medicine Man, which has been on an acquisition spree, trades on the over-the-counter markets under the ticker symbol MDCL.
Medicine Man co-founder and CEO Andy Williams had been a major proponent of the new law.
“It’s interesting to see this move come so quickly, because there’s still a rulemaking process that’s required by the bill,” said Samantha Walsh, a longtime cannabis lobbyist and partner at Denver-based Tetra Public Affairs.
The rulemaking process is designed to provide more clarity for licensees who are mulling acquisitions or outside ownership and investment opportunities, Walsh said.
Walsh does not expect mass consolidation in the market once the regulations are written, likely this fall.
“But we will see quite a few big moves,” she said.
The acquisition of Los Sueños Farms and MesaPur, according to the news release, will increase Medicine Man’s “footprint and expand its operations in cultivation, extraction, production and sales, advancing its plan to become a fully vertically integrated operator.”
According to the release, Los Sueños is the largest cannabis farm in North America, with 36 acres of farmland under cultivation, and an additional 36,000 square feet of cannabis greenhouses.
Bob DeGabrielle, Los Sueños’ founder, will join Medicine Man’s board.
Purplebee’s is a family-owned business that is veteran- and woman-owned and operated.
More details on the acquisitions can be found here.