Colorado-based cannabis company Schwazze signed a $10.5 million deal to acquire a Denver medical marijuana dispensary from Standing Akimbo.
The deal for “certain assets of Standing Akimbo,” including the dispensary, will be satisfied by $1 million in cash, $5.54 million in Schwazze stock and $4 million in deferred cash payments, according to a news release.
Schwazze – a vertically integrated company – described the acquisition as part of a “concerted effort to expand operations in Colorado’s $200M+ medical cannabis market.”
“As part of the Standing Akimbo acquisition, Schwazze plans to open a Colorado Springs medical dispensary acquired in 2022 under the Standing Akimbo banner,” Schwazze said in its release.
The deal is expected to close in the third quarter of this year, subject to regulatory and license approvals.
Upon closing, Schwazze said it would have 26 operating Colorado stores, excluding “two additional Smokey’s dispensaries previously announced for acquisition in the second quarter of 2023 as well as a Colorado Springs medical dispensary acquired in 2022.”
Standing Akimbo has made headlines for its dispute over tax records with the IRS.
Shares of Schwazze trade as SHWZ on U.S. over-the-counter markets and the NEO Exchange in Canada.