Medicine Man agrees to acquire Colorado’s largest outdoor marijuana grower, manufacturer

Medicine Man, Medicine Man agrees to acquire Colorado’s largest outdoor marijuana grower, manufacturer

Los Sueños Farms

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.

2 comments on “Medicine Man agrees to acquire Colorado’s largest outdoor marijuana grower, manufacturer
  1. Boom and Busted on

    As long as the regulations continue to favor large corporations over small businesses, market consolidation will be the norm rather than the exception. In California in particular, something as simple as getting a land use permit can cost over $200,000 when you take into account the required geological studies, archeological surveys, groundwater assessments, fish and wildlife surveys, and a dozen others, without even touching CEQA requirements. My advice to small businesses- take advantage of loans and lines of credit that are now available to cannabis businesses and scale up as quickly as possible to achieve a competitive price point.

  2. Sammy Joe Hawkins on

    I would like to know what it takes to talk to the owner or the CEO of this facility. If 1 would give me a call I am convinced that I can convince you that I know how to grow top quality marijuana.

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